India begins diesel supply to Bangladesh amid Middle East energy tensions

India has started supplying around 5,000 metric tons of diesel to Bangladesh through the Bangladesh-India Friendship Pipeline (BIFP), as global oil markets face disruption from Middle East tensions.

The fuel was pumped Monday from Numaligarh Refinery in Assam and is expected to reach Dinajpur in about 44 hours, according to state-run Doordarshan News.

The BIFP, inaugurated in 2023, was built to transport imported fuel efficiently and reduce costs for Bangladesh. The country lacks significant strategic oil reserves, relying on limited operational storage and immediate imports.

New Delhi is set to supply Dhaka with 180,000 tonnes of diesel through the pipeline, following Dhaka's reported request for additional supplies from India.

Authorities in Bangladesh have ordered nationwide school closures and implemented fuel rationing to conserve resources, amid long queues at gas stations.

Regional tensions escalated since Israel and the US launched joint strikes on Iran on Feb. 28, which have killed more than 1200 people, including then-Supreme Leader Ayatollah Ali Khamenei.

Tehran retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and several Gulf countries hosting US military assets.

Iran also effectively closed the Strait of Hormuz around March 1. The strategic waterway normally handles about 20 million barrels of oil shipments daily and roughly 20% of the global liquefied natural gas trade.