West Asia crisis: Bangladesh seeks increased diesel supply from India amid energy strain

NEW DELHI: Bangladesh has formally asked the Indian government to raise petroleum product exports from state-run Oil India Ltd’s Numaligarh Refinery via the India-Bangladesh Friendship Pipeline, according to three people familiar with the developments.

While India has not yet accepted the request, officials say it may consider raising supplies, critical for Bangladesh’s key textile industry. The request comes as Bangladesh faces severe energy strain due to the blockade of the Strait of Hormuz amid the Iran war.

“A request from Bangladesh has been received by India. The pipeline has a maximum capacity of 1 million tonne per annum, the quantum currently procured is much less. So, there is scope of further increase in supplies, if required. If the situation requires, the request may be considered,” said one of the three people mentioned above.

An official with Numaligarh Refinery said the company currently supplies around 100,000 tonne per annum of diesel to Bangladesh, as per the usual trade. “No special supplies have been added,” and that no directive to increase supply has been issued yet.

India’s petroleum and external affairs ministries, and the Bangladesh embassy, did not respond to emailed queries by press time.

Bangladesh’s finance minister, Amir Khasru Mahmud Chowdhury, raised the request over the weekend in a meeting with Indian high commissioner Pranay Verma. An official with the Bangladesh embassy in Delhi, speaking on condition of anonymity, said, “Bangladesh has been sourcing energy from India for several years now. Some demand have been put forward to increase the diesel supplies in the wake of the global situation. There is no update on a response so far.”

This request is additional to the 5,000 tonnes of diesel already sent to Bangladesh Petroleum Corp. (BPC) under an existing agreement. On Monday, around 5,000 tonnes of diesel were supplied via the Bangladesh‑India Friendship Pipeline, expected to reach the Parbatipur depot in Dinajpur within about 44 hours.

BPC’s general manager for commerce and operations, Muhammad Morshed Hossain Azad, said around 113 tonnes of diesel are pumped each hour, with the consignment likely to be delivered by Wednesday evening.

The 131-km pipeline, inaugurated in 2022, is the first cross-border energy link between India and Bangladesh. India supplies petroleum products to seven districts in northern Bangladesh through it, while Numaligarh Refinery has been supplying petroleum products to Bangladesh by rail since 2015.

Built at an estimated ₹377 crore, the Bangladesh portion cost ₹285 crore, funded by India through grant assistance.

Mint previously reported that India is also considering proposals to send high sulphur fuel oil (HSFO) and furnace oil to Bangladesh. HSFO is largely used in the maritime industry, while furnace oil powers homes, businesses, and industrial units.

Beyond retail demand, petroleum supply is crucial for Bangladesh’s textile industry. The pipeline is also central to Numaligarh Refinery Ltd’s expansion, with Bangladesh being the most suitable market for its offtake.

India remains a key source of energy for Bangladesh.