Crude Oil Crisis Eases, Eastern Refinery Resumes Production

Published : Tuesday, 5 May, 2026 at 11:14 AM Count : 15

After remaining shut for nearly a month, the country’s only state-owned oil refinery, Eastern Refinery PLC, is set to resume operations as crude oil supply stabilizes.

Officials said the refinery will restart its processing activities from May 7.

The disruption was caused by ongoing geopolitical tensions and conflict in the Middle East, which significantly affected crude oil imports. In particular, tanker movement through the Strait of Hormuz was disrupted, halting crude oil arrivals since February 18. As a result, the refinery’s crude processing unit was shut down from April 14—marking the first such suspension since its commercial operation began in 1968.

Managing Director of ERL, Md. Sharif Hasnat, said that a 100,000-ton crude oil shipment from Saudi Arabia is expected to arrive at the Port of Chattogram between May 5 and 6. Refinery operations are expected to resume between May 7 and 8 after unloading begins.

“There is currently no major shortage of crude oil. Another shipment is expected within this month, which will help maintain a stable supply chain,” he added.

According to government sources, an alternative route has been used to import crude oil via the Red Sea. A vessel named “MT Ninemia” is carrying 100,000 tons of crude oil, while another shipment—“MT Fossil”—of the same volume is expected from the United Arab Emirates later this month.

The Bangladesh Petroleum Corporation (BPC) typically imports Arabian Light crude from Saudi Arabia and Murban crude from the UAE. The refinery processes around 1.5 million metric tons of crude oil annually.

Meanwhile, the Bangladesh Shipping Corporation (BSC) has initiated new shipment plans to stabilize the country’s fuel supply chain.

Experts say the resumption of Eastern Refinery’s operations will bring relief to the country’s fuel supply system and help reduce import dependency to some extent. However, they emphasize that long-term energy security will require capacity expansion and diversified sourcing.

Overall, the restart of Eastern Refinery after a prolonged shutdown is being seen as a significant positive development for Bangladesh’s energy sector.

FP/A