- India supplies 5,000 tons diesel to Bangladesh.
- Part of existing 1.8 lakh ton annual agreement.
- Bangladesh secures fuel amidst Middle East crisis.
Amid a spiralling situation in the Middle East, Bangladesh is set to receive 5,000 tons of diesel from India at a time when New Delhi is also securing its energy reserves, news agency ANI reported. This diesel will enter Bangladesh via the Parbatipur border. The chairman of Bangladesh Petroleum Corporation (BPC), Muhammad Rezanur Rahman, told the news agency over the phone.
Why is India supplying diesel to Bangladesh in crisis?
However, there has been a question over why India is supplying a massive amount of oil to a neighbouring state, despite knowing the volatile situation in the Strait of Hormuz.
Notably, India and Bangladesh have an agreement for oil supply. According to the pact, India will supply 1,80,000 tons of diesel to Bangladesh via the pipeline each year. The 5,000 tons of diesel is a chunk of the promised supply, not the fresh one.
India-Bangladesh fuel agreement
"We have an agreement with India, and according to that agreement, India will supply 1,80,000 tons of diesel to Bangladesh via the pipeline each year. The 5,000 tons of diesel that is arriving now is a part of that agreement", he told ANI over the phone.
"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," the BPC chairman said.
Earlier on Sunday, Bangladesh conducted drives to inspect the fuel stock situation, the Bangladesh Energy Ministry said. "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," the Bangladesh Energy Ministry said in a statement.
China is also supplying diesel to Bangladesh
In addition to India, Bangladesh has also begun receiving diesel supply from China, news agency Reuters reported on Tuesday. Quoting officials, Reuters reported that Dhaka now has enough fuel to cover about a month of demand.
A 27,000-metric-ton diesel cargo from PetroChina arrived at Chittagong port on Monday, while a cargo of 28,000 metric tons from Vitol is waiting at the port outer anchorage, a BPC official told Reuters.
It is worth mentioning that the oil supply across the world has been hampered after Israel and the US carried out massive attacks on Iran. In response, Tehran has blocked the Strait of Hormuz, which accounts for almost 20 per cent of oil supply to the world.
(With inputs from agency)