Bangladesh plans to triple Indian diesel imports from 2024 level amid energy shortage

Annual purchases set to reach 180,000 tonnes

Bangladesh plans to import 180,000 tonnes of diesel from India in 2026 as it contends with a serious energy shortage and seeks additional fuel supplies. Spread evenly across the year, the approved volume would equal about 15,000 tonnes per month, according to ABP News.

Bangladeshi minister Iqbal Hasan Mahmood has requested extra diesel from India. Indian Ministry of External Affairs spokesperson Randhir Jaiswal said New Delhi was considering the request while taking account of its domestic requirements. The response leaves the potential supplementary volume and delivery schedule open, beyond the imports already planned for 2026.

The annual programme represents a sharp increase in bilateral diesel flows. Bangladesh imported about 70,000 tonnes from India in 2024, or an average of roughly 5,800 tonnes per month. Purchases rose to 130,000 tonnes in 2025 and are now scheduled to reach 180,000 tonnes in 2026. The latest target is more than two and a half times the 2024 volume.

Pipeline transforms delivery capacity

The supply relationship is governed by a 15-year agreement signed in 2017. Under the arrangement, Numaligarh Refinery Limited, a subsidiary of Oil India Limited, supplies diesel to Bangladesh Petroleum Corporation.

Logistics initially depended on rail and were slower and more expensive. In 2016, average rail deliveries amounted to only 2,200 tonnes per month, while annual volumes ranged between 50,000 and 150,000 tonnes. The 512-kilometre rail route was subsequently complemented by the India-Bangladesh Friendship Pipeline, which entered operation in March 2023.

The 131.5-kilometre pipeline connects Siliguri in India with Parbatipur in Bangladesh and can transport 1 million tonnes of diesel annually. The 2026 programme would therefore use 18% of its stated capacity, leaving significant technical room for additional shipments if commercial supplies are available and India approves Bangladesh’s request.

Contract terms and retail prices

ABP News reports that Bangladesh Petroleum Corporation finalized an agreement worth about $119.1 million with Numaligarh Refinery for deliveries from January through December 2026. The publication also gives the value as 14.62 crore Bangladeshi taka, although that taka figure does not align with the stated dollar amount. It reports a diesel base price of $83.22 per barrel, including a premium of $5.50 per barrel. Bangladesh is expected to finance the purchases through bank funding and its own resources.

Bangladesh adjusts domestic fuel prices through an automatic mechanism linked to international markets. Diesel currently sells for 115 taka per litre, equivalent to about 81 Indian rupees, while petrol is priced at 145 taka per litre and octane at 140-145 taka. These retail levels matter for transport operators, agricultural users and industries reliant on backup generation as the country manages its energy shortage.

Supply security gains strategic importance

The pipeline gives Bangladesh a shorter, higher-capacity route for securing diesel from a neighbouring refining system. It also makes India a more important marginal supplier when Bangladesh needs volumes beyond its regular programme. However, the Indian government’s reference to domestic requirements shows that spare pipeline capacity alone does not guarantee extra fuel.

The two countries share a 4,096-kilometre border, and Bangladesh relies on Indian territory for overland trade with Nepal and Bhutan. The expanded diesel programme adds energy infrastructure to already extensive commercial links involving food, agricultural products and textile inputs. For fuel buyers and transport-dependent businesses in Bangladesh, the immediate issue is whether India can approve additional deliveries without constraining its own market.