HomeBUSINESSBangladesh Imports Diesel From India Amid Iran War Fears

Bangladesh Imports Diesel From India Amid Iran War Fears

Bangladesh begins emergency diesel imports from India via cross border pipeline as Iran war threatens fuel supply stability.

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KEY TAKEAWAYS:
  • Bangladesh begins importing 5,000 tonnes of diesel from India through the Friendship Pipeline
  • Move comes amid concerns of fuel shortages due to Iran war and global supply disruptions
  • Cross border pipeline helps cut transport time and energy costs

Bangladesh has begun importing 5,000 tonnes of diesel from India through the Bangladesh India Friendship Pipeline as fears grow over a possible fuel shortage linked to the ongoing conflict in Iran.

Officials from the Bangladesh Petroleum Corporation confirmed that diesel pumping started at 3:20 pm local time on Tuesday, with fuel being transported from Numaligarh Refinery Limited to the Parbatipur Depot.

The shipment is expected to be completed within 44 hours, with delivery likely to finish by Wednesday evening.

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Bangladesh imports diesel from India to prevent supply crisis

The move comes as global energy markets remain volatile due to the escalating Iran war, which has raised fears of potential disruptions in global oil supply.

Bangladesh imports a significant portion of its refined petroleum products, making the country vulnerable to supply shocks and price spikes.

Energy officials said the emergency diesel transfer is aimed at ensuring stable fuel availability for industries and transportation.

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Friendship Pipeline speeds up fuel supply

The 131 kilometre Bangladesh India Friendship Pipeline connects India’s Siliguri Marketing Terminal with Bangladesh’s Parbatipur depot.

Before the pipeline became operational in 2023, Bangladesh had been importing diesel from India by railway wagons since 2016, which was slower and more expensive.

The pipeline allows fuel to move directly between the two countries, reducing both transportation time and logistical costs.

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India Bangladesh fuel agreement under review

Under an existing bilateral agreement, India is expected to export more than 180,000 tonnes of diesel annually to Bangladesh.

However, current plans indicate that around 120,000 tonnes may be supplied in 2026.

Officials from both countries are also discussing additional fuel shipments, including a proposal to supply another 50,000 tonnes over the next four months through the pipeline.

The talks were held during meetings involving Bangladesh Finance Minister Amir Khasru Mahmud Chowdhury and India’s High Commissioner to Dhaka Pranay Verma.

Bangladesh’s decision to import diesel from India highlights how geopolitical tensions in the Middle East can quickly impact regional energy security. The Friendship Pipeline is emerging as a critical lifeline, enabling faster fuel supply and strengthening energy cooperation between the two neighbouring countries.

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