Fresh 7,000 tons of diesel start flowing from India via pipeline

Bangladesh has started receiving new shipment of 7,000 tons of diesel from India as the ongoing Middle East conflict disrupts fuel transport and puts pressure on domestic supply.

Shipments started from India's Numaligarh Refinery on Saturday evening (March 28) and are expected to take another one to two days to fully arrive.

Bangladesh Petroleum Corporation (BPC) Chairman Md Rejanur Rahman said pipeline deliveries continue alongside alternative sources, keeping the risk of a fuel shortage low for now.

According to BPC, While 17 shipments were planned for this month, only nine have arrived so far, one is en route, and the schedule for the remaining seven remains uncertain. To offset the shortfall, reliance on the Bangladesh–India Maitree Pipeline has increased, with around 15,000 tons already delivered via pipeline since March, including a 5,000-ton batch on March 25.

The 130-kilometer Bangladesh–India Maitree Pipeline, built under a 2017 agreement and commissioned in December 2022, transports diesel directly from Numaligarh Refinery to the Parbatipur depot in Dinajpur. Under the agreement, India supplies 120,000 tons annually, with an optional additional 60,000 tons.

Typically, 5,000 tons are delivered per batch, but current storage conditions allow up to 7,000 tons, reducing per-barrel transport costs to approximately $5.50—lower than maritime shipping.

Energy analysts note that while alternative supply routes provide stability amid global volatility, long-term storage capacity must be enhanced to fully leverage this system.

According to BPC, diesel accounts for roughly 63 per cent of Bangladesh’s total fuel consumption, with demand for FY 2024–25 estimated at around 435,000 tons, largely met through imports.