The country’s energy sector is at extreme risk due to the war in the Middle East. There is a nationwide outcry over fuel shortages. People are enduring endless suffering. Long queues at petrol pumps for fuel are becoming a daily occurrence. In some places, unrest and disorder are breaking out. Illegal hoarding and black marketing of fuel are not stopping. The recent increase in fuel prices has left lower and middle-income groups directionless. The surge in fuel prices has pushed the lives of ordinary people into deeper crisis. It has negatively impacted market prices, which may further fuel inflation. For lower and middle-income people, surviving the struggle of life has become a major challenge. Amid such harsh realities, Bangladesh Army Chief General Waker-Uz-Zaman has highlighted a major structural weakness of the country.
Even after more than five decades of independence, no government has been able to establish a modern, technologically advanced oil refinery with adequate capacity. So far, Eastern Refinery Limited (ERL), established about 61 years ago in Patenga, Chattogram port city, remains the country’s only oil refinery. ERL has an annual refining capacity of 1.5 million tons. If the previous governments had not shown inactivity and negligence in establishing another refinery with a capacity of 7 to 10 million tons, it would have not only saved a significant amount of foreign currency but also opened the gateway of opportunity. The Army Chief has emphasized the importance of a new oil refinery to strengthen the country’s energy security.
On Thursday (April 23), speaking as the chief guest at the closing ceremony of the Capstone Course at the National Defence College (NDC), General Waker-Uz-Zaman expressed regret that even after 54"55 years of independence, a second oil refinery has not been established in the country. Referring to the crisis created by the war involving Iran, Israel, and the United States, he stressed the need to enhance energy and defense capabilities. He said, “The importance of energy capacity is clearly visible in the current global situation. Despite having crude oil, we are forced to import refined fuel at higher prices due to the lack of our own refinery, which increases energy costs.”
Currently, the country has an annual demand of about 9 million tons of fuel oil, both refined and unrefined. Geopolitical instability drives up oil prices. The country’s only state-owned Eastern Refinery supplies about 20 percent of the annual demand. Bangladesh Petroleum Corporation (BPC) imports 6.5 to 7 million tons. The rest of the refined fuel imports cost the government millions of dollars. In addition, private power plants import furnace oil for their own needs. Diesel accounts for the largest share of imports, making up nearly two-thirds of total supply.
A matter of concern is that the country’s only oil refinery, Eastern Refinery, exceeded its operational lifespan two decades ago. There has been no significant regular maintenance. Refining activities continue at low efficiency. The state-owned refinery’s capacity has not increased in any meaningful way. At the same time, there has been no initiative to expand storage capacity for this strategically important commodity. A few days ago, news spread that Eastern Refinery had shut down due to a shortage of raw materials. However, in reality, it has not been shut down; rather, it is operating at low feed or limited production, according to Joint Secretary of the Energy Ministry, Monir Hossain Chowdhury.
The current condition of Eastern Refinery was also reflected in the Army Chief’s remarks. He said, “We could not improve or expand Eastern Refinery. The current tensions surrounding Iran, the United States, and Israel show how an energy crisis affects every individual’s life.” He identified the failure to achieve necessary infrastructure and capacity on time as a major limitation.
Energy experts believe that due to the Iran war, the global fuel crisis has severely impacted Bangladesh. They said, “Army Chief General Waker-Uz-Zaman has reached the root of the crisis. In simple terms, he has highlighted a major structural weakness of the country. He has placed special emphasis on increasing energy capacity. Because within the next 10 years, the country’s fuel demand will rise to at least 10 thousand crore tons. If attention is not given to this issue from now, the country will face an even more difficult situation in the future.”
Analysts say that if the current refinery’s capacity is enhanced and another modern refinery is established, the cost in the energy sector will decrease. At the same time, if Bangladesh becomes fully integrated into the international maritime transport system, additional profits could be earned in this sector. In the current crisis, the Army Chief has been widely praised both online and offline for bringing this important national issue to the forefront. Energy experts believe that by learning from his concerns, several initiatives can be undertaken. They say that through this, refined fuel could be produced domestically at affordable prices, thereby strengthening the country’s energy security. The cost of establishing a modern new plant could be recovered within five years through savings from reduced imports of refined fuel. Bangladesh would be able to smooth its path in the energy sector. At the same time, the country’s overall foreign exchange reserves would increase.
At the same event at the National Defence College (NDC), the Army Chief also spoke about the modernization of the defense forces. He said that a strong navy is essential to ensure the safety of sea routes and a strong air force is necessary to secure airspace. Emphasizing the importance of acquiring sufficient aircraft and naval vessels, he said, “We prepare not to wage war, but to avoid war by building capability. And without a strong defense system, it is not possible to implement an effective foreign policy.”
On ensuring transparency in institutions, the Army Chief clearly stated that an organization without accountability cannot progress. He said that the military wants the public to know more about its activities. People have the right to know and ask questions. Referring to various national issues, including the Rohingya crisis, General Waker-Uz-Zaman called upon the younger generation to become more aware and skilled. He warned that in today’s world, the cost of any mistake is very high. Therefore, he emphasized coordinated civil-military efforts in leadership and national security. Analysts consider his remarks on these issues to be timely.
Author is a journalist and political analyst
