Bangladeshโs only state-owned oil refinery, Eastern Refinery Limited (ERL), has suspended its production, raising fresh concerns over the countryโs fuel security and supply stability.
According to sources, the refineryโlocated in Chattogramโceased operations after running out of crude oil stock, following nearly two months of halted crude imports. The final batch of refining was completed on Sunday afternoon, bringing an end to the production of 16 different petroleum products.
ERL, which typically refines around 4,500 tonnes of crude oil daily, had already reduced its processing capacity to approximately 3,500 tonnes per day over the past month due to supply shortages. By March 4, crude reserves reportedly dropped below 2,000 tonnes, falling beneath the minimum โdead stockโ level required for safe operations. To avoid potential financial and operational risks, authorities decided to suspend refining activities.
Data from Bangladesh Petroleum Corporation (BPC) indicates that Bangladesh imports between 6.5 and 6.8 million tonnes of fuel annually. Of this, around 1.5 million tonnes is crude oilโmainly sourced from the Middle Eastโwhich is refined domestically at ERL. Diesel and crude oil constitute the largest share of the countryโs fuel imports.
Energy analysts warn that the shutdown could put pressure on fuel supply chains if alternative arrangements are not maintained. However, officials note that Bangladesh continues to import refined petroleum products directly to mitigate shortages.
In this context, the Bangladesh-India Friendship Pipeline has played a role in supplementing supply. Authorities report that approximately 8,000 metric tonnes of diesel have already been received through the pipeline, with plans to import an additional 40,000 metric tonnes within April.
Experts emphasize that while emergency imports may provide short-term relief, ensuring a steady supply of crude oil and maintaining refinery operations remain critical for long-term energy security.
The situation highlights the importance of diversified energy sourcing, efficient supply chain management, and strategic reserves to safeguard against future disruptions in Bangladeshโs fuel sector.
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