Government Secures Fuel Supply by Importing Refined Oil from New Sources Amid Middle East Crisis

Facebook
Twitter
LinkedIn
WhatsApp


Dhaka: The government has taken proactive steps to ensure a continuous supply of gasoline by importing refined oil from alternative international sources due to disruptions at the Eastern Refinery Limited (ERL) caused by the ongoing Middle East conflict.



According to Bangladesh Sangbad Sangstha, state minister for power, energy, and mineral resources, Aninda Islam Amit, announced the government’s strategy to import more refined fuel from countries such as China, Singapore, Malaysia, Indonesia, and India to maintain a stable supply chain. This move comes as the Strait of Hormuz, a critical passage for oil shipments, remains disrupted.



The ERL, which processes crude oil imported mainly from Saudi Arabia and the UAE, typically accounts for one-fifth of the nation’s annual fuel demand. However, the refinery is currently facing a crude oil shortage due to the Middle East crisis and the closure of the Strait of Hormuz. ERL has the capacity to refine approximately 1.5 million metric tons of petroleum products annually, but with the current disruption, the government is relying more on imported refined fuel.



The ministry’s data highlights that the national diesel demand stands at about 4.5 million metric tons, with ERL supplying 1.5 million metric tons. Since the Strait of Hormuz’s closure on February 28, scheduled crude oil imports for March and April have been delayed. A cargo loaded with 100,000 metric tons of Arabian Light Crude (ALC) in March 2026 remains at Ras Tanura port in the Arabian Gulf due to security concerns, while another shipment has been canceled.



To mitigate the impact of the supply chain disruption, an Arabian Light Crude cargo is expected to be loaded in mid-April and reach Chattogram in early May without transiting through the Strait of Hormuz. Additionally, the government has requested a Murban cargo from Saudi Aramco, expected to arrive in May, and issued work orders for importing 100,000 metric tons of crude oil through direct purchase at a cost of US$ 102.885 million.



The government’s continued efforts to import refined fuel from alternative sources aim to prevent any adverse impact on the national fuel supply, ensuring that the ERL’s operational challenges do not affect the country’s gasoline availability.