Bangladesh to import 180,000 tonnes of diesel from India for Tk 15b
Bangladesh will import 180,000 tonnes of diesel from the Indian state-owned company Numaligarh Refinery Limited (NRL) between January and December at a cost of Tk 14.62 billion (Tk 1,462 crore).
The state-run Bangladesh Petroleum Corporation (BPC) will pay a portion of the cost, while the remaining amount will come from bank loans.
The Advisory Committee on Government Purchase approved a proposal to import this diesel from NRL at a meeting held at the secretariat on Tuesday, chaired by finance adviser Salehuddin Ahmed.
Earlier, on 22 October, the Advisory Committee on Economic Affairs had given in-principle approval for the import of refined fuel oil for BPC in 2026. In line with that decision, the procurement committee has now finalised the proposal to import diesel specifically from NRL.
According to sources concerned, the cost of this import has been determined based on negotiations with NRL, a subsidiary of Oil India Limited. The total cost has been set at USD 119.133216 million or approximately Tk 14.62 billion (1,461.76 crore) in Bangladeshi currency. The premium per barrel of diesel has been fixed at USD 5.50, while the base price has been set at USD 83.22.
The base price is determined in line with international market rates and changes in accordance with the import contract and global market fluctuations. It is not a fixed or single price; rather, it may increase or decrease depending on market conditions.
Replying to a query from journalists after the procurement committee meeting, Adviser for Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan said that the diesel is being imported from NRL under a 15-year long-term agreement.
The current government did not sign this agreement; the import process is continuing as part of a contract signed during the previous government’s tenure, he added.
In January last year, the government procurement committee had also approved a proposal to import 130,000 tonnes of diesel from NRL. At that time as well, the premium per barrel of diesel was USD 5.50.
NRL’s refinery is located in the Indian state of Assam. From there, diesel is transported to NRL’s marketing terminal in Siliguri, West Bengal, about 60 kilometres away. From that terminal, the diesel is sent to BPC’s Parbatipur depot. Since January 2016, the diesel had long been transported by train.
To ease fuel transportation and reduce costs, the Bangladesh–India Friendship Pipeline was constructed between the two countries. The construction of the 130-kilometre-long pipeline, built with Indian financing, was completed on 12 December 2022. Diesel is now being transported through this pipeline. In addition, an NRL liaison office in Dhaka has been operational since March 2024.
According to information from the Ministry of Power, Energy and Mineral Resources, NRL is a major company in India. In the 2023–24 fiscal year, NRL’s turnover was Tk 251.47 billion (25,147 crore).
Under the agreement with India, Bangladesh is set to receive 200,000 tonnes of fuel oil per year for the first three years, 300,000 tonnes per year for the next three years, 500,000 tonnes per year for the following four years, and then 1 million tonnes per year thereafter.
Meanwhile, although NRL received ‘Navratna’ status from the Indian government in December 2025, the company faces allegations of environmental pollution.
Indian environmental activists have expressed concerns over alleged direct dumping of untreated petroleum waste into the Dhansiri River. In this regard, India’s National Green Tribunal has taken suo motu cognisance of a case this year, which is still under trial.