Bangladesh has said that India will send 5,000 tons of diesel to the country today — at a time when nations are scrambling to secure fuel supplies amid disruptions caused by the US-Israeli war on Iran.
Bangladesh has said that India will send 5,000 tonnes of diesel to the country on Tuesday.
Under a long-term agreement, Bangladesh is supposed to receive 180,000 tonnes of diesel, and the consignment of 5,000 tonnes is part of the agreement, Muhammad Rezanur Rahman, the Chairman of Bangladesh Petroleum Corporation (BPC), told ANI.
The delivery will be made at a time when nations are scrambling to secure fuel supplies amid disruptions caused by the American–Israeli war on Iran. Oil prices have surged as
suppliers have cut production and oil tankers’ traffic has stalled in the Strait of Hormuz — around 20-25 per cent of the world’s seaborne oil and gas pass through the waterway.
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“According to the agreement, at least 90,000 tonnes of diesel should be imported to Bangladesh within six months. The consignment arriving today is 5,000 tonnes, and we hope that within the next two months, we will bring in the total diesel amount for the entire six months,” said Rahman.
The new Bangladeshi government is currently inspecting the fuel situation in the country in the wake of reports of attempts to create an artificial shortage through hoarding.
As the US-Israel war on Iran has spread across West Asia, oil prices have risen to their highest levels in four years, crossing the $100 mark to reach as high as $119. Analysts have said that oil prices could reach $150 a barrel if the war continues and the situation in the Strait of Hormuz does not improve.
Bangladesh looks at pact with India for energy security
At a time of widening energy insecurity in the world, Bangladesh is looking at a long-term energy agreement with India to shore up supplies.
In 2017, India’s Numaligarh refinery in Assam and BPC signed a 15-year agreement for the supply of diesel.
Compared to the previous imports of around 60,000 tonnes per year, Bangladesh has now increased the import to 180,000 tonnes, according to The Financial Express newspaper of Bangladesh.
Previously, the oil was transported via train, but now it is transported through the India-funded Bangladesh-India Friendship Pipeline, as per The Daily Pioneer.
The oil is transported from the Numaligarh refinery’s terminal in Siliguri, West Bengal, to BPC’s depot in Parbatipur.
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