Eastern Refinery Limited (ERL) in Chittagong, Bangladesh, is confronting a potential shutdown due to a critical crude oil shortage. The shortage has arisen from delays in oil shipments, primarily affected by geopolitical tensions in the Middle East.
As of March 31, ERL reported a stock of only 23,000 tonnes of crude oil, sufficient for just seven days of operation. The refinery, with a daily processing capacity of 4,500 tonnes, has reduced its output to between 3,000 and 3,700 tonnes per day to conserve resources.
The crisis has been exacerbated by Iran’s restrictions on the strategic Strait of Hormuz, a crucial passage for global oil transportation. This has led to significant instability in the energy market, affecting import-dependent nations like Bangladesh.
Efforts are underway to secure alternative crude sources from countries such as Malaysia and Nigeria. A shipment from Saudi Arabia, carrying 1 lakh tonnes of crude, is expected to depart on April 21, potentially reaching Bangladesh by early May.
Despite the challenges, Bangladesh remains hopeful that the crisis will be resolved soon, with ongoing negotiations and testing of alternative crude oil samples.
Published in SouthAsianDesk, April 5, 2026
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