Bangladesh to import 180,000 tonnes of diesel from India

Bangladesh has decided to import 180,000 tonnes of diesel from India’s state-owned Numaligarh Refinery Limited (NRL) between January and December, with the total cost estimated at Tk 14.62 billion.

The import will be carried out by the state-run Bangladesh Petroleum Corporation (BPC). Part of the payment will be made from BPC’s own funds, while the remaining amount will be financed through bank loans. The decision was approved on Tuesday by the Advisory Committee on Government Purchase at a meeting held at the secretariat. The meeting was chaired by Finance Adviser Salehuddin Ahmed.

This approval follows an earlier in-principal decision taken on October 22 by the Advisory Committee on Economic Affairs, which cleared the import of refined fuel oil for BPC in 2026. Based on that policy decision, the procurement committee has now finalised the plan to source diesel specifically from NRL.

Officials familiar with the deal said the import price was settled through negotiations with NRL, a subsidiary of Oil India Limited. The total value of the contract has been fixed at USD 119.13 million, equivalent to about Tk 14.62 billion. Under the agreement, the premium for diesel has been set at USD 5.50 per barrel, while the base price stands at USD 83.22.

The base price will fluctuate in line with international market trends and contractual terms, meaning the final cost may vary depending on global fuel prices.

Speaking to reporters after the meeting, Adviser for Power, Energy and Mineral Resources Muhammad Fouzul Kabir Khan said the diesel import is being conducted under a long-term agreement spanning 15 years. He clarified that the current government did not sign the deal, noting that it was concluded during the tenure of the previous administration and is now being implemented accordingly.

Bangladesh has previously imported diesel from NRL under the same arrangement. In January last year, the procurement committee approved the purchase of 130,000 tonnes of diesel from the Indian refiner, with the same premium of USD 5.50 per barrel.

NRL’s refinery is in Assam, India. Diesel is transported from the refinery to NRL’s marketing terminal in Siliguri, West Bengal, and then sent to BPC’s depot in Parbatipur. Until recently, the fuel was transported by rail, a method used consistently since January 2016. To streamline transportation and reduce costs, Bangladesh and India jointly built the Bangladesh–India Friendship Pipeline. The 130-kilometre pipeline, financed by India, was completed in December 2022 and now carries diesel directly between the two countries. An NRL liaison office has also been operating in Dhaka since March 2024.

According to the Ministry of Power, Energy and Mineral Resources, NRL is a major player in India’s energy sector, recording a turnover of Tk 251.47 billion in the 2023–24 fiscal year. Under the broader fuel supply agreement with India, Bangladesh is scheduled to receive 200,000 tonnes of fuel oil annually during the first three years, 300,000 tonnes per year over the next three years, 500,000 tonnes annually for the following four years, and 1 million tonnes per year thereafter.