Songpi: April 12, 2026
Bangladesh is considering a new fuel sourcing strategy that would involve importing Russian crude oil, refining it in India, and then bringing back the finished petroleum products, as it navigates supply pressures linked to the ongoing Middle East conflict.
According to officials familiar with the development, the proposed arrangement would require Bangladesh to bear the cost of crude imports, refining in India, and transportation of the refined fuel.
The proposal has been advanced by Bangladesh’s energy and mineral resources division, which has sought approval from Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku to initiate discussions with the foreign ministry for a government-to-government (G2G) agreement.
The move comes as Bangladesh’s only state-run refinery in Chittagong lacks the capacity to efficiently process Russian crude, which is generally heavier in composition. With an annual refining capacity of about 1.5 million tonnes, the facility is primarily designed for Middle Eastern crude, making the country reliant on imported refined fuels.
Energy cooperation between India and Bangladesh has been expanding, with rising diesel imports from India gaining prominence in recent engagements between the two countries.
The two nations are already connected through a cross-border diesel pipeline linking Siliguri in India to Parbatipur in Bangladesh’s Dinajpur district. The pipeline facilitates fuel imports from Numaligarh Refinery Limited under a 15-year agreement signed in 2023.
A temporary waiver on US sanctions related to Russian oil exports has created a limited opportunity for Bangladesh to explore indirect procurement channels. Additionally, Dhaka has proposed importing up to 600,000 tonnes of Russian diesel, according to earlier reports.
In a related development, Russian Ambassador to Bangladesh Alexander Khozin recently met Minister Tuku to discuss strengthening bilateral energy cooperation.
The proposed strategy highlights Bangladesh’s efforts to diversify fuel sources and ensure energy security amid ongoing global supply disruptions.
