7,000 tons of diesel arriving from India

Uncertainty in shipping schedules due to the war in the Middle East has created pressure on fuel supply.

In this situation, the Bangladesh Petroleum Corporation (BPC) is placing increased emphasis on importing diesel through pipelines alongside sea routes.

A fresh consignment of 7,000 tons of diesel has now started arriving from India’s Numaligarh Refinery.

The fuel began arriving on Saturday evening and may take another one to two days to be fully delivered.

When contacted, BPC Chairman Md. Rezanur Rahman said, “Supply through the pipeline is continuing. With alternative sources remaining active, there is currently no risk of a fuel shortage.”

According to BPC sources, diesel is heavily relied upon in agriculture irrigation, road transport, and power generation across the country.

As a result, even minor disruptions in supply can have significant impacts. Although 17 vessels were scheduled to deliver diesel this month, only nine have arrived so far.

One vessel is on its way, while the schedules of the remaining seven remain uncertain.

To manage the shortfall, reliance on pipeline supply has been increased. Around 15,000 tons of diesel have already been imported from India through the pipeline. Earlier, on 25 March, a shipment of 5,000 tons had begun arriving.

BPC officials said that transportation costs for fuel have risen due to the ongoing war in the Middle East.

A shortage of vessels in the international market has also emerged, making it difficult to maintain scheduled deliveries. In this context, the pipeline has become a comparatively stable alternative.

BPC signed an agreement with India’s Numaligarh Refinery on 22 October, 2017. To facilitate diesel imports, the Bangladesh–India Friendship Pipeline was constructed between the two countries.

Constructed with Indian financing, the approximately 130-kilometre pipeline was launched in December 2022. Through this pipeline, diesel is transported directly from the Numaligarh Refinery to the depot in Parbatipur, Dinajpur.

Under the agreement, 120,000 tons of diesel are to be supplied annually, with an additional provision of up to 60,000 tons, though this is not mandatory.

Since the outbreak of war in the Middle East, diesel has been arriving from India at regular intervals, typically in consignments of 5,000 tons each.

This is due to limited storage capacity in Bangladesh for receiving pipeline supplies. Larger volumes cannot be imported unless existing stocks are cleared.

However, as fuel is now being unloaded more quickly from storage tanks, it has become possible to import 7,000 tons at a time.

The cost of transporting diesel via pipeline from India is around $5.5 per barrel (159 litres), which is often lower than transport by sea.

Energy analysts say that developing alternative supply systems is essential during periods of global instability. However, without increasing storage capacity in the long term, the full benefits cannot be realised.

Meanwhile, concerns over diesel supply have already emerged in some areas at the field level. With the agricultural season approaching, maintaining supply stability has now become a major challenge.

According to BPC data, diesel accounts for about 63 per cent of the country’s total fuel demand. In the 2024–25 fiscal year, total diesel demand stood at approximately 4.35 million tons.

Most of this demand is met through direct imports, while around 700,000 to 750,000 tons are supplied annually through the refining of crude oil.