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India sends 5,000 tonnes of diesel to Bangladesh amid energy crisis and global oil market volatility

India sends 5,000 tonnes of diesel to Bangladesh amid energy crisis and global oil market volatility

A worker refuels a car at a filling station in Dhaka on March 9, 2026. Bangladesh launched fuel rationing on March 8 as the war in the Middle East deepened an energy crunch, creating long queues at filling stations and boiling over into anger. Photograph: (AFP)

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India has begun exporting 5,000 tonnes of diesel to Bangladesh through the Parbatipur pipeline as the country faces a severe energy crisis, LNG supply disruptions, and rising fuel prices amid the West Asia conflict.

India is exporting 5000 tonnes of diesel amid volatility in the global energy market. The diesel will reach Bangladesh through a pipeline and will enter via the Parbatipur border. The war in West Asia continues to damage global trade, with disruptions in the Strait of Hormuz.

"We have an agreement with India, and according to that agreement, India will supply 180,000 tonnes of diesel to Bangladesh via the pipeline each year. The 5,000 tonnes of diesel that is arriving now is a part of that agreement", said Muhammad Rezanur Rahman, the chairman of Bangladesh Petroleum Corporation (BPC). He further added that, as per the agreement, at least 90,000 tons of diesel will arrive within six months.

Bangladesh is facing a severe energy crisis. The authorities have closed all private and public universities to reduce energy consumption as well as ease traffic congestion. Authorities have said that university campuses consume the largest amount of electricity for the residential halls, laboratories, air conditioning and the classrooms.

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The nation imports 95 per cent of its energy needs. On Friday, Bangladesh imposed daily limits on the sale of oil amid reports of panic buying and stockpiling. "Nevertheless, 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," said Bangladesh's Energy Ministry.

As per the government-imposed limits, motorcycles can buy up to 2 litres of octane or petrol a day; private ​cars 10 litres; SUVs, jeeps and microbuses 20–25 litres; pickups and local ​buses 70–80 litres; and long-distance buses, trucks and container carriers 200–220 litres of diesel.

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The country also faces a rise in the cost of Liquefied Natural Gas as Qatar has suspended deliveries. All three of Bangladesh's long-term LNG suppliers, QatarEnergy, OQ Trading, and Excelerate Energy, have invoked force majeure. The country is acquiring emergency spot cargoes at a record price of $23-$28 MMBtu.

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Kushal Deb

Kushal Deb is a mid-career journalist with seven years of experience and a strong academic background. Passionate about research, storytelling, writes about economics, policy, cult...Read More