India Transships Diesel to Bangladesh


Cooperation on Energy between India and Bangladesh is now upward after the joint declaration and signing agreements on behalf of both prime ministers’ visit to each other in their own countries.

During the visit of the Bangladesh Prime Minister Sheikh Hasina, a 15-year agreement to supply diesel to Bangladesh was signed in 2017.

In fact, a supply to Bangladesh from Numaligarh Refinery dispatched the first consignment of high-speed diesel to Bangladesh a railway rake containing 2,281 metric tonnes of the fuel chugged off from Siliguri to the Parbitipur depot of Bangladesh Petroleum Corp (BPC).

BPC will have to pay a premium of $7 per barrel to Bharat Petroleum, whereas it pays $4.5 to international suppliers, according to Mosleh Uddin, director of operations and planning at the BPC. From this consideration, the price will be higher.

Now, international suppliers are responsible for bringing the petroleum products up to Chittagong Port, leaving the BPC to bear transport costs to distribution channels it to different parts of the country. After the installation of this pipeline, that overall transport cost will go down if a significant amount of diesel could be supplied from Parbatipur. Though it will take a couple of years to install the pipeline, reported the Telegraph.

Bangladesh last imported a very small amount of diesel from India through river routes in 2007. The import of petroleum products through river routes was stopped later on.

But discussions are underway to resume diesel import by water vessels until the pipeline is installed, said a BPC official last April. This is the first-time petroleum products from India have brought through the railways.

Bangladesh now imports petroleum products from around 10 countries, currently importing around 3.5 million tonnes a year to meet local demand.

All of the foreign suppliers of BPC are supplying Low-Sulphur Diesel fuel. Kuwait Petroleum Company (KPC) and Philippine National Oil Company (PNOC), Petco are the key suppliers.

BPC has term deals with KPC, Petco, PNOC, Emirates National Oil Company (ENOC), PetroChina, Indonesia’s Bumi SiakPusako, Vietnam’s Petrolimex, Unipec Singapore and new supplier Turkish Petroleum International Company.

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