Bangladesh’s only state-owned oil refinery, Eastern Refinery Limited (ERL), is operating at low capacity due to crude oil supply disruptions caused by the ongoing Iran war. The Energy Division said March’s scheduled crude oil shipment from the Middle East was delayed, forcing ERL to run on emergency reserves. Two of its four units remain shut for maintenance. Bangladesh Petroleum Corporation (BPC) Chairman Md. Rezanur Rahman confirmed that the last shipment arrived in February and that a new consignment is expected in early May, after which full operations should resume. BPC assured that the country will not face a fuel shortage as additional diesel and octane imports have been arranged.

To address technical limitations and increase capacity, the government approved a Tk 31,000 crore project to modernize and double ERL’s refining capacity from 1.5 million to 4.5 million tons annually. Experts, however, questioned the project’s profitability and transparency, citing cost overruns, fossil fuel dependency, and lack of accountability in project management. Some analysts argued that investing in renewable energy would yield greater long-term benefits.

BPC maintains that the expansion will strengthen national energy security, reduce import costs, and enhance storage capacity, with construction expected to begin in early 2027.