[🇧🇩] Energy Security of Bangladesh

[Saif]

BD seeks US ban waiver to import Russian energy

Bangladesh Wednesday formally requested a temporary waiver of United States sanctions to import energy from Russia to mitigate fuel crunch amid the Middle East tensions triggered by US-Israel war on Iran. Finance Minister Amir Khosru Mahmud Chowdhury conveyed the request to US Ambassador Brent T.

thefinancialexpress.com.bd

BD seeks US ban waiver to import Russian energy
Dhaka focused on maximising benefits within framework, says finance minister about US-BD pact

Published :
Mar 12, 2026 00:44
Updated :
Mar 12, 2026 00:44

Bangladesh Wednesday formally requested a temporary waiver of United States sanctions to import energy from Russia to mitigate fuel crunch amid the Middle East tensions triggered by US-Israel war on Iran.

Finance Minister Amir Khosru Mahmud Chowdhury conveyed the request to US Ambassador Brent T. Christensen during a courtesy meeting at the minister's office in Dhaka's Sher-e-Bangla Nagar.

"The US has already granted a waiver to India, allowing it to temporarily purchase Russian oil. Bangladesh is seeking a similar waiver," the minister told journalists after the meeting.

If India was given this opportunity, he hopes, Bangladesh should also be considered, as it would provide significant support to the country, which has limited alternatives at hand.

Ambassador Christensen indicated that he would forward Bangladesh's request to Washington for further consideration, the finance minister said.

The government says there are enough fuels in stock and more in pipeline to meet short-term demand yet transporters are making a beeline to filling stations in what is described as panic buying.

Beyond energy, the discussion covered broader investment and trade relations between the US and Bangladesh as well as capacity-building initiatives involving government agencies, he said.

On trade and tariff agreements -- which have induced calls from economists for a review for parity -- the minister noted that while the pacts are bilateral and cannot be interpreted unilaterally, Bangladesh is focused on maximizing benefits within the existing framework.

Responding a question from journalists, the minister said the government examined potential scenarios depending on the duration of the ongoing conflict -- short-term, midterm, or prolonged -- and the implications for Bangladesh's strategic planning.​

 

[Saif]

Where Bangladesh imports diesel from, and how much comes from India

Bangladesh once imported almost all of its diesel from the Middle East. Most shipments mainly arrived by sea from Kuwait. Over the past two decades, however, the sources of imports have changed significantly. Several Southeast Asian countries have now emerged as major suppliers, while a notable...

en.prothomalo.com

Where Bangladesh imports diesel from, and how much comes from India
Two decades ago, a large share of diesel imports came through government-to-government (G2G) agreements. At that time, Middle Eastern countries were the primary suppliers. Gradually, however, around 50 per cent of diesel began to be purchased through competitive international tenders.

Masud Milad & Sujoy Chowdhury

Chattogram
Updated: 11 Mar 2026, 13: 26

A drop of diesel is seen at the tip of a nozzle in a petrol station in Nice, France, 20 October, 2021 Reuters

Bangladesh once imported almost all of its diesel from the Middle East. Most shipments mainly arrived by sea from Kuwait. Over the past two decades, however, the sources of imports have changed significantly. Several Southeast Asian countries have now emerged as major suppliers, while a notable amount also comes from India.

Import data from the National Board of Revenue (NBR) shows that in the 2006–07 fiscal year, about 91 per cent of the diesel imported by the Bangladesh Petroleum Corporation (BPC) came from Kuwait. India accounted for the remaining 9 per cent at the time.

Within a decade, the situation began to shift. Singapore rapidly moved up the list of diesel suppliers and eventually became the leading source. At the same time, Malaysia, China, the United Arab Emirates (UAE), Saudi Arabia and several other countries were added to the list of suppliers.

The sources of imports have become even more diversified now. In the first eight months of the current fiscal year (July–February), Bangladesh imported around 2.3 million tonnes of diesel. Of this amount, 41 per cent came from Singapore and 24 per cent from Malaysia. As a result, dependence on Middle Eastern countries has declined significantly.

Two decades ago, a large share of diesel imports came through government-to-government (G2G) agreements. At that time, Middle Eastern countries were the primary suppliers. Gradually, however, around 50 per cent of diesel began to be purchased through competitive international tenders.

This increased the number of suppliers and diversified the sources of imports. It is worth noting that diesel is still imported solely by the government sector, with the Bangladesh Petroleum Corporation (BPC) handling the imports.

Although the sources of diesel imports have changed, imports from India have not followed a single consistent trend. At times they have decreased, while at other times they have increased.
Diesel is the most widely used fuel in the country’s energy system. A large portion of transports—buses, trucks, pickups, covered vans and cargo vehicles—runs on diesel.

The fuel is also used to operate irrigation equipment in agriculture, run engine-powered boats on inland waterways and power generators in many industries. During electricity shortages, some power plants also rely on diesel.

As a result, transport, agriculture, industry and electricity generation all depend heavily on this fuel. About 24 per cent of the country’s diesel is used in agriculture.

We are starting the process to import 120,000 tonnes of oil from Brunei. At the same time, imports from the United States will also be possible. This will further diversify the sources of imports----Anindya Islam, State Minister for Power, Energy and Mineral Resources.

According to BPC data, diesel accounts for about 63 per cent of the country’s total fuel demand. In the 2024–25 fiscal year, the demand for diesel was about 4.35 million tonnes. A large portion of this demand is met through direct imports, while about 700,000 to 750,000 tonnes are produced annually by refining crude oil.

Although the sources of diesel imports have changed, imports from India have not followed a single consistent trend. At times they have decreased, while at other times they have increased.

According to NBR data, 9 per cent of the diesel imported into the country in the 2006–07 fiscal year came from India. For several years afterward, the share remained in single digits, though it later reached double-digit levels in some years.

Over the past five years, India’s share was highest in the 2023–24 fiscal year. That year, about 551,000 tonnes of diesel were imported from India, accounting for nearly 15 per cent of total imports.

The amount has decreased somewhat since then. In the last fiscal year, imports from India stood at around 448,000 tonnes, while about 333,000 tonnes arrived in the first eight months of the current fiscal year.

Several companies, including India’s state-owned Indian Oil Corporation Limited, supply diesel to Bangladesh. To facilitate imports from India, the two countries built the Bangladesh–India Friendship Pipeline.

The nearly 130-kilometre pipeline, constructed with Indian financing, was launched in December 2022. Through this pipeline, diesel from the Numaligarh refinery in India is delivered directly to the depot in Parbatipur, Dinajpur. Shipments reach Bangladesh within two days of being sent through the pipeline.

Now Bangladesh imports diesel from several countries including Singapore, Malaysia, China, Indonesia and India. As a result, even if problems arise in one region, supplies can be ensured from alternative sources.

Recently, a shipment of 5,000 tonnes of diesel arrived in Bangladesh through the pipeline. Under the agreement, about 180,000 tonnes of diesel can be imported annually in this way.

Diversified sources reduce risks

The diversification of diesel import sources has also reduced supply risks. In the past, heavy dependence on the Middle East meant that any instability in the Strait of Hormuz could create pressure on fuel supplies.

Now Bangladesh imports diesel from several countries including Singapore, Malaysia, China, Indonesia and India. As a result, even if problems arise in one region, supplies can be ensured from alternative sources.

State Minister for Power, Energy and Mineral Resources Anindya Islam said that Bangladesh now has multiple sources for diesel imports. In addition to G2G agreements, diesel is also being purchased through competitive tenders, which has reduced the risk of major supply disruptions. Diesel can also be brought easily through the pipeline from the Numaligarh refinery in India.

“We are starting the process to import 120,000 tonnes of oil from Brunei. At the same time, imports from the United States will also be possible. This will further diversify the sources of imports,” he added.​

 

[Saif]

How dependent is Bangladesh on Middle East oil, gas?

Middle Eastern countries such as Saudi Arabia and Qatar are two key sources

www.thedailystar.net

How dependent is Bangladesh on Middle East oil, gas?

Mohammad Suman

It has been 12 days since the US-Israel war on Iran pushed the Middle East into turmoil, raising fears of a global energy crisis. Many countries, including Pakistan, have taken austerity measures, such as introducing a four-day workweek for public employees and announcing holidays for schools beginning March 16.

In Bangladesh, the government has begun rationing fuel supply to avoid a shortage, as the country meets 95 percent of its oil and 30 percent of its gas requirements through imports. Middle Eastern countries such as Saudi Arabia and Qatar are two key sources.

Now, fears are growing over the adequate supply of fuel as Iran has blocked the Strait of Hormuz, through which a fifth of the world's oil travels, demanding that the US and Israel stop the attack on Iran. Long queues of bikes and cars have been visible at filling stations in the capital, Dhaka, for more than a week. There is no sign of them shortening.

This raises the question: What is the stake of the Middle East in the global energy market?

The Energy Information Administration (EIA) says five of the world's top 10 oil producers are from the Gulf region -- Saudi Arabia, Iraq, the United Arab Emirates, Iran and Kuwait. These five countries produced 26.61 million barrels per day (bpd) in 2023, out of total global output of 101.81 million bpd. That means the region accounts for more than one-fourth of daily global oil production.

How much does Bangladesh import from the region?

SAUDI ARABIA, THE UAE MAJOR SUPPLIERS OF CRUDE

Customs data showed that Bangladesh imports crude and refined fuel oil from a range of countries including Iran, the United Arab Emirates (UAE), Oman, Saudi Arabia, Kuwait, Iraq and Qatar in the Middle East, as well as Singapore, Malaysia and India, to meet its annual demand of roughly 70 lakh tonnes.

During the last 14 months, Bangladesh imported around 20.69 lakh tonnes of crude oil, of which Saudi Arabia, the UAE and Iraq supplied around 13 lakh tonnes, or 63 percent of the total. Malaysia was another supplier, selling 3 lakh tonnes of crude oil, which was 15 percent of the total crude petroleum imports.

Saudi Arabia emerged as the largest individual supplier, exporting 7.10 lakh tonnes, representing roughly 35 percent of the total crude import volume.

The UAE followed as the second-largest source with 6.20 lakh tonnes, accounting for 30 percent.

Eastern Refinery Limited processes the imported crude, refining it into 13 petroleum products, including diesel, petrol, octane and jet fuel.

While crude imports remain concentrated among these four countries, the sourcing of refined products shows a different trend.

PETROL, DIESEL, FURNACE OIL

Bangladesh imported 3 lakh tonnes of petrol during the same period -- between January 2025 and March 2026.

Only five percent, or around 36,000 tonnes, came from the Middle Eastern countries Oman and Qatar, while the largest share was sourced from Singapore, which supplied around 1.15 lakh tonnes, accounting for about 38 percent of total petrol imports.

For diesel and furnace oil, Bangladesh relied heavily on Singapore and Malaysia, with no supplies sourced from Middle Eastern countries.

Of the 39.07 lakh tonnes of diesel imported, Singapore provided 17.5 lakh tonnes, or 45 percent, while Malaysia supplied 8.76 lakh tonnes, or 22 percent.

Similarly, furnace oil imports reached 17.43 lakh tonnes, with Singapore accounting for 10.19 lakh tonnes, or 57 percent, and Malaysia contributing 6.81 lakh tonnes, or 39 percent.

Meanwhile, diesel imports from India are rising, increasing from 70,055 tonnes in 2024 to about 122,000 tonnes in 2025. The Bangladesh Petroleum Corporation (BPC) plans to import more than 100,000 tonnes from India this year.

To facilitate these imports, BPC regularly imports refined products from Numaligarh Refinery Limited. Beyond the rail transport used since 2016, the Bangladesh-India Friendship Pipeline now carries fuel from Numaligarh to Parbatipur in Dinajpur.

LNG AND LPG

During the same period, the country imported 25.86 lakh tonnes of liquefied natural gas (LNG). Of this, 16.52 lakh tonnes, or 64 percent, came from Qatar.

Additionally, about 4.36 lakh tonnes, or 17 percent, were imported from the United States. The remaining LNG was sourced from Nigeria, Equatorial Guinea, Indonesia, Angola, Malaysia, and Australia.

In the case of liquefied petroleum gas (LPG), the country was previously heavily dependent on the Middle East, but recently its reliance on the United States has been increasing.

Over the past 14 months, Bangladesh imported 15.87 lakh tonnes of LPG, of which 11.07 lakh tonnes, or 69 percent, came from Middle Eastern countries such as the United Arab Emirates, Iraq, and Oman.

Meanwhile, 3.40 lakh tonnes, or 22 percent, were imported from the United States. However, following the recent trade agreement between the US and the Bangladesh government, dependence on the Middle East has begun to decline.

In the last two months alone, 62 percent of the total 1.73 lakh tonnes of LPG imports came from the United States.​