Bangladesh to Receive 5,000 Tons of Diesel from India via Pipeline Amid Fuel Supply Concerns

5,000 tons of diesel are being imported from India to Bangladesh on Tuesday through a cross border pipeline as part of an annual supply agreement between the two countries, while both governments took steps to manage fuel availability amid global supply pressures linked to geopolitical tensions.

The diesel consignment entered Bangladesh through the Parbatipur border, Bangladesh Petroleum Corporation (BPC) chairman Muhammad Rezanur Rahman said.

Rahman said the agreement also sets a six month import target. "According to the agreement, at least 90,000 tons of diesel should be imported to Bangladesh within six months. The consignment arriving today is 5,000 tons, and we hope that within the next two months, we will bring in the total diesel amount for the entire six months", BPC chairman said.

Amid concerns about fuel availability, Bangladesh authorities recently carried out inspections of fuel stocks across the country.

Earlier in the week, Bangladesh conducted drives to inspect the fuel stock situation, the Bangladesh Energy Ministry said.

Why is Bangladesh taking action against fuel stockpiling amid the diesel supply situation?

"In the current crisis situation, various media outlets have reported that some unscrupulous traders are illegally stockpiling fuel in an attempt to create an artificial shortage in the market," Bangladesh Energy Ministry said in a statement.

"To address this crisis, the government has already fixed fuel supply limits based on vehicle categories," the statement read.

"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," it added.

In response, the Bangladesh government conducted mobile court drives to prevent illegal stockpiling and sale beyond prescribed limits.

Information regarding Mobile Court operations conducted by the Executive Magistrate in Dhaka showed that City Filling Station, Tejgaon, Dhaka (MPL) had been dry since the previous day and operations would resume once fuel arrived shortly. Clean Fuel, Tejgaon (POPLC) was reported to be operating in compliance with all regulations.

Meanwhile, the Ministry of Petroleum and Natural Gas in India issued orders to oil refineries to increase Liquefied Petroleum Gas (LPG) production and directed that the additional output be used specifically for domestic consumption following recent geopolitical disruptions that have affected the global fuel supply chain.

Why has India increased LPG production amid global fuel supply disruptions?

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the Ministry of Petroleum and Natural Gas announced on X.

The government said domestic LPG supply to households has been prioritised to ensure energy security amid ongoing uncertainty in the global oil and energy market due to the West Asia crisis.

To manage supply conditions, the ministry also introduced a 25 day inter booking period for consumers. "The ministry has prioritised domestic LPG supply to households and introduced a 25 day inter- booking period to avoid hoarding/black marketing," the Ministry said.

Regarding the distribution of imported fuel, the government designated priority sectors for non domestic consumption.

"Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," the Ministry stated, adding that "For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries."

Earlier on Monday, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri addressed the broader energy landscape and the impact of global conflicts on Indian markets during an interaction with media professionals.

"In informal interaction with a large group of media professionals today, we had detailed discussion on the emerging geopolitical situation and challenges facing the energy markets. Uninterrupted energy imports are flowing into India from routes that are not impacted by the conflict and we are taking all necessary steps to ensure availability of energy to our citizens," Puri said on X.

(With inputs from ANI)