Bangladesh to import 180,000 tonnes of diesel from Assam refinery

Bangladesh has approved the import of 180,000 tonnes of diesel from India’s state-owned Numaligarh Refinery Limited by December this year, committing an estimated 14.62 billion Taka for the purchase.

The decision was cleared by the Advisory Committee on Government Purchase at a meeting held in Dhaka on January 6, chaired by Finance Adviser Salehuddin Ahmed. The fuel will be procured by the state-run Bangladesh Petroleum Corporation, with payments split between direct settlement by BPC and financing through bank loans.

Officials familiar with the deal said the import cost was finalised after negotiations with NRL, a subsidiary of Oil India Limited. The total value has been pegged at $119.13 million, based on a premium of $5.50 per barrel over a base price of $83.22 per barrel. The final cost will fluctuate in line with international oil prices.

Responding to questions from journalists, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan said the import is being carried out under a 15-year long-term agreement signed during the tenure of the previous government.

NRL’s refinery is located in Assam. Diesel is transported to Siliguri and then supplied to Bangladesh through the Bangladesh-India Friendship Pipeline, which became operational in December 2022.