India Bangladesh Fuel Trade: How much petrol and diesel does Bangladesh buy from India each month? The figures will be mind-boggling.
India-Bangladesh Fuel Trade: The interim government led by Muhammad Yunus has approved the decision to import diesel from India. Let's find out how much fuel Bangladesh buys from India each month.
India-Bangladesh Fuel Trade: The interim government led by Muhammad Yunus recently made a major decision. Bangladesh will import 180,000 tonnes of diesel from India between January and December 2026. To achieve this, Bangladesh has signed a deal worth 146.2 million taka with Numaligarh Refinery Limited, a subsidiary of Oil India Limited. Meanwhile, let's find out how much fuel Bangladesh buys from India each month.
How much fuel does Bangladesh buy every month?
If the 2026 target of 180,000 tons of diesel imports is distributed evenly throughout the year, Bangladesh will import approximately 15,000 tons of diesel from India every month. Fuel cooperation between India and Bangladesh has been steadily growing for nearly a decade. Its foundation was laid in 2017, when the two countries signed a 15-year long-term agreement. Under this agreement, India's Numaligarh Refinery Limited will supply diesel to Bangladesh Petroleum Corporation.
Initially, logistics were slow and expensive. Diesel was supplied by rail until 2016, averaging around 2,200 tons per month, with volumes ranging between 50,000 and 150,000 tons.
The Friendship Pipeline changed everything.
The real change comes with the commissioning of the India-Bangladesh Friendship Pipeline in March 2023. This pipeline connects Siliguri in India to Parvatipur in Bangladesh. It is only 131.5 kilometers long, compared to the previous 512-kilometer rail route. It can transport up to 1 million tons of diesel annually. In 2024, the average was around 5,800 tons per month and will increase to 15,000 tons per month in 2026. Imports in 2024 were approximately 70,000 tons. In 2025, this increased to 130,000 tons, and the approved figure for 2026 is 180,000 tons.
Deal price and financial structure
The 2026 agreement is valued at approximately $119.1 million. The base price of diesel is set at $83.22 per barrel, including an additional premium of $5.50 per barrel. Bangladesh Petroleum Corporation pays for imports through its own funds and bank financing. Annual imports are expected to increase further under the 15-year agreement. For Bangladesh, Indian diesel is a more economical and politically stable option for fueling its transport and agriculture sectors.