secures

South Korea has secured an additional 60 million barrels of alternative oil supplies for May that will replace supplies from the Middle East that have been blocked due to the effective closure of the Strait of Hormuz, the government said Tuesday.

The country has secured a total of 110 million barrels of oil — 50 million for April and 60 million for May — so far from 17 countries, including Saudi Arabia, the United States, the United Arab Emirates, Brazil and Canada, Yang Ghi-wuk, deputy minister for trade, industry and resource security, said in a regular press briefing.

The amount secured for this month and May each represents about 60 percent and 70 percent, respectively, of monthly oil supplies to South Korea when things run as usual, he added.

Regarding the oil swap system introduced last week, Yang said the country’s major four refiners have submitted plans to borrow more than 30 million barrels under the program, with around 8 million barrels to be delivered this week.

Under the oil swap system, South Korean refiners can borrow crude oil from the national reserve and return the same volume once shipments of their crude supplies secured abroad arrive.

“Refiners have expressed interest in the oil swap system and are willing to utilize it,” he said.

Touching on naphtha, a crucial raw material in petrochemical manufacturing, Yang said he expects imports for the raw material to reach 770,000 tons this month, which will be equivalent to some 70 percent of the amount imported during the same month last year.

Also, the aggregate naphtha supply is projected to reach around 80 to 90 percent of the amount needed for the month on a normal basis when adding around 1.1 million tons of the material produced within the country, Yang added.

“We plan to work with companies to make efforts in securing naphtha supplies once the supplementary budget passes and the extra budget is allocated,” he said.

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The war involving Iran, United States and Israel is increasingly affecting energy supplies far beyond the Middle East, with Bangladesh now scrambling to secure fuel imports after disruptions to regional shipping routes.

Bangladeshi officials say the country has begun receiving diesel shipments from suppliers including China and India, allowing authorities to secure enough fuel to meet roughly one month of national demand. Arrangements are also being made to secure supplies for an additional month.

The South Asian nation of about 175 million people depends heavily on imported energy, with roughly 95% of its fuel requirements sourced from abroad. The disruption of Middle Eastern oil flows following the war has therefore exposed Bangladesh to severe supply risks.

Fuel Rationing and Economic Disruptions

To manage the supply shortage, authorities have introduced emergency measures including fuel rationing for vehicles, restrictions on diesel sales and the temporary closure of universities.

Energy shortages are also affecting Bangladesh’s critical export industries. The country is the world’s second-largest clothing exporter after China, and many garment factories rely on diesel-powered generators during power outages.

Industry leaders say the situation has worsened since the conflict began in late February. Power cuts have doubled to as much as five hours per day, forcing factories to rely more heavily on backup generators.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said many companies are struggling to obtain sufficient diesel to keep their operations running during electricity outages.

The shortages threaten to disrupt production in one of Bangladesh’s most important economic sectors, which accounts for the majority of the country’s export earnings.

Emergency Diesel Shipments Arrive

To stabilise supplies, the state-run Bangladesh Petroleum Corporation (BPC) has arranged diesel shipments from international traders.

Energy officials say around 60,000 metric tons of diesel are currently being delivered by three trading companies, with another 90,000 metric tons expected to arrive later this month.

A cargo of approximately 27,000 metric tons from PetroChina has already arrived at Chittagong Port, while another shipment of roughly 28,000 metric tons from Vitol is waiting at the port’s outer anchorage.

Additional supplies are also arriving through a cross-border pipeline from India’s Numaligarh Refinery, which is currently providing about 5,000 metric tons of diesel. Officials said negotiations are underway to secure a further 30,000 metric tons from Indian Oil Corporation.

Bangladesh typically consumes about 380,000 metric tons of diesel each month. However, officials estimate that rationing measures have reduced current demand to around 270,000 metric tons per month.

Oil Imports Threatened by Hormuz Disruptions

While refined diesel cargoes have continued to arrive, Bangladesh faces greater risks in securing crude oil shipments for its domestic refineries.

The country imports about 1.4 million metric tons of crude oil annually under long-term supply agreements with Saudi Aramco and Abu Dhabi National Oil Company.

However, shipments from these suppliers must travel through the strategically vital Strait of Hormuz, which has been heavily disrupted by the war. Officials say at least one cargo of around 100,000 tons from Saudi Aramco has already been delayed in the Gulf due to the ongoing crisis.

The Strait of Hormuz is one of the world’s most important energy transit routes, and any prolonged disruption could have far-reaching consequences for countries heavily dependent on imported fuel.

Gas Shortages Add to Energy Crisis

Bangladesh’s energy difficulties extend beyond diesel shortages. Severe natural gas shortages have already forced the closure of four of the country’s five state-run fertiliser factories.

Authorities have redirected the available gas supply toward electricity generation in an effort to stabilise power production during the crisis.

The combination of diesel shortages, disrupted oil imports and limited gas supplies is placing growing pressure on Bangladesh’s energy system at a time when global fuel markets are already experiencing heightened volatility.

Analysis: Energy Dependence Exposes Economic Vulnerability

Bangladesh’s struggle to secure diesel supplies illustrates how the war involving Iran is affecting energy-importing economies far beyond the immediate conflict zone.

Countries that rely heavily on imported fuel are particularly vulnerable to disruptions in global energy shipping routes, especially those linked to the Strait of Hormuz. Even temporary interruptions can lead to fuel shortages, higher prices and broader economic disruption.

For Bangladesh, the situation highlights the structural risks created by its dependence on imported energy. Industries such as garments, which rely on stable electricity supplies and backup diesel generators, are especially exposed to supply shocks.

Although emergency shipments from China and India have temporarily stabilised supplies, the situation remains fragile. If the conflict in the Middle East continues to disrupt oil shipments or drive up prices, Bangladesh could face prolonged energy shortages with significant implications for its economy and export industries.

With information from Reuters.