Over the past two decades, Bangladesh’s diesel import landscape has undergone a profound transformation. Once heavily reliant on the Middle East—particularly Kuwait—the country now sources diesel from a broader range of suppliers, with South-East Asian nations and India assuming increasingly prominent roles.
From Middle Eastern Dependence to Diversification
In the 2006–07 fiscal year, 91% of diesel imported by the state-run Bangladesh Petroleum Corporation (BPC) originated from Kuwait, while India accounted for only 9%, according to the National Board of Revenue (NBR). At the time, the majority of imports were executed under government-to-government (G2G) agreements, providing stability but limiting the geographical diversity of supply.
Over the subsequent decade, this profile shifted significantly. Singapore emerged as a major supplier, quickly taking a leading position, while Malaysia, China, the United Arab Emirates, and Saudi Arabia also joined the list of exporters. Today, roughly 50% of diesel imports are procured through competitive international tenders, expanding both supplier choice and market flexibility.
Current Import Sources
In the first eight months of the current fiscal year (July–February), Bangladesh imported approximately 2.3 million tonnes of diesel. Singapore contributed 41% of this volume, Malaysia 24%, and India around 14%, with the remainder coming from China, the UAE, Indonesia, and Brunei.
Diesel Imports by Source (July–February, Current Fiscal Year)
Country / Region Volume (million tonnes) Share (%)
Singapore 0.943 41
Malaysia 0.552 24
India 0.333 14
Other (China, UAE, Indonesia, Brunei) 0.472 21
Total 2.30 100
Diesel constitutes nearly 63% of Bangladesh’s total fuel consumption. In 2024–25, national diesel demand stood at roughly 4.35 million tonnes, primarily met through imports, while domestic refineries contributed approximately 0.7–0.75 million tonnes from processed crude oil.
India’s Role in Diesel Supply
India’s contribution has remained significant, albeit variable. In 2023–24, imports from India reached a peak of around 551,000 tonnes, representing 15% of total diesel imports. This fell to 448,000 tonnes last fiscal year, and 333,000 tonnes in the first eight months of the current year. Suppliers include the state-owned Indian Oil Corporation Limited alongside private firms.
The Bangladesh–India Maitree Pipeline facilitates direct transport from India’s Numaligarh Refinery to BPC’s Parbatipur depot in Dinajpur. Commissioned in December 2022, the 130-kilometre pipeline enables deliveries within two days and has an annual capacity of approximately 180,000 tonnes.
Reduced Risk Through Source Diversification
The expansion of import sources has considerably reduced supply risks. Earlier dependence on the Middle East meant that geopolitical instability in the Hormuz Strait could threaten fuel supply. Today, with imports from Singapore, Malaysia, China, Indonesia, India, and soon Brunei and the United States, Bangladesh can offset regional disruptions with alternative channels.
“Diesel imports now come from a diverse set of sources, combining G2G agreements with competitive tenders,” explained Anindya Islam, State Minister for Power, Energy, and Mineral Resources. “This reduces the likelihood of major supply crises. The Numaligarh pipeline ensures reliable Indian supply, and we are initiating imports of 120,000 tonnes from Brunei, with the possibility of future imports from the United States. This will further strengthen supply diversity.”
Diesel’s Strategic Importance
Diesel remains Bangladesh’s most widely used fuel, powering buses, trucks, pickups, and goods vehicles. It is vital for irrigation pumps in agriculture, engine-powered riverine vessels, industrial generators, and even some power plants during electricity shortages. Notably, agriculture alone accounts for around 24% of diesel consumption, highlighting its indispensable role across transport, farming, industry, and energy sectors.