India Supplies 5,000 Tonnes Of Diesel To Bangladesh Via Pipeline As Energy Crisis Deepens
India has begun exporting 5,000 tonnes of diesel to Bangladesh through a cross-border pipeline amid growing volatility in global energy markets, with the shipment entering through the Parbatipur border crossing.
The supply is part of an existing bilateral agreement under which India is committed to delivering 180,000 tonnes of diesel to Bangladesh annually via the pipeline. Muhammad Rezanur Rahman, Chairman of the Bangladesh Petroleum Corporation (BPC), confirmed the arrangement, adding that at least 90,000 tonnes are expected to arrive within the first six months under the deal.
Ongoing conflict in West Asia continues to weigh on global trade, with disruptions in the Strait of Hormuz compounding pressure on energy supply chains worldwide.
Bangladesh is currently grappling with a severe energy crisis. In a bid to curb electricity consumption and ease traffic congestion, authorities have shut down all private and public universities. Officials cited university campuses as among the heaviest consumers of electricity, owing to the demands of residential halls, laboratories, air conditioning systems, and classrooms.
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The country imports approximately 95 per cent of its total energy requirements, leaving it acutely vulnerable to global supply shocks. On Friday, the government imposed daily purchase limits on fuel sales following reports of panic buying and stockpiling at petrol stations across the country.
Bangladesh’s Energy Ministry flagged widespread violations of the restrictions. “It has been observed that at various petrol pumps/filling stations, fuel is being sold in excess of the government-approved limit, additional stock is being hoarded for excessive profit, and there are tendencies of selling fuel on the open market and engaging in smuggling,” the ministry stated.
Under the government-mandated caps, motorcycles are permitted to purchase up to 2 litres of octane or petrol per day, while private cars are limited to 10 litres. SUVs, jeeps, and microbuses may buy between 20 and 25 litres; pickups and local buses between 70 and 80 litres; and long-distance buses, trucks, and container carriers between 200 and 220 litres of diesel daily.
The energy crisis has been further aggravated by a surge in Liquefied Natural Gas costs after Qatar suspended deliveries to the country. All three of Bangladesh’s long-term LNG suppliers — QatarEnergy, OQ Trading, and Excelerate Energy have invoked force majeure. Bangladesh is now sourcing emergency spot cargoes at record prices ranging between $23 and $28 per MMBtu.