Bangladesh seeks increased fuel supplies from India as ties show signs of recovery

Bangladesh has moved to secure increased fuel supplies from India, signalling a renewed effort to stabilise energy availability while rebuilding diplomatic ties between the two neighbouring countries. The request comes at a time when Bangladesh is grappling with a deepening energy shortage driven by global supply disruptions, prompting policymakers to seek closer regional cooperation to address immediate shortages.

The development follows a high-level visit by Bangladesh’s Foreign Minister Khalilur Rahman to New Delhi, marking the first ministerial engagement under the country’s new administration that took office in February this year. The visit is widely seen as an early step toward restoring relations that had deteriorated in recent years, with both sides emphasising the importance of economic and strategic collaboration moving forward.

During the two-day visit, discussions between Bangladeshi and Indian officials focused on energy cooperation, with Dhaka formally requesting higher volumes of fuel and fertiliser imports. Bangladesh, which relies heavily on imported energy, has faced significant supply disruptions due to ongoing geopolitical tensions in the Middle East.

India responded positively to the request, indicating that it would consider supplying additional fuel “readily and favourably,” according to official statements, highlighting willingness to support Bangladesh during a period of heightened economic and energy pressure.

“Bangladesh sought higher volumes of fuel and fertiliser, with India indicating the request would be considered readily and favourably,” the country’s foreign ministry said, underlining the central role of energy cooperation in the evolving bilateral relationship.

Beyond energy, the talks also addressed broader areas of cooperation, including easing visa restrictions for Bangladeshi travellers, particularly for medical and business purposes, as well as strengthening security coordination between the two nations. These discussions point to a wider diplomatic reset, aimed at restoring trust and rebuilding economic connectivity across borders.

Relations between the two countries had come under strain following political developments in Bangladesh in 2024, when former Prime Minister Sheikh Hasina was ousted from power after widespread unrest, triggering diplomatic tensions, trade restrictions, and visa suspensions. However, recent engagements suggest a gradual thaw, with both sides signalling a willingness to move beyond past frictions and prioritise mutual economic interests.

The renewed focus on energy cooperation also reflects the urgency of Bangladesh’s domestic challenges. The country imports nearly all of its fuel requirements, making it highly vulnerable to external shocks, price volatility, and supply disruptions. The on-going crisis has already led to rationing measures, long queues at fuel stations, and mounting pressure on key sectors such as agriculture and industry.

Notably, existing infrastructure such as the Bangladesh–India Friendship Pipeline (BIFP) built while Sheikh Hasina was in power, has emerged as a critical enabler of energy cooperation, allowing for direct and efficient diesel supply from India. Recent shipments through the pipeline have helped partially ease shortages, reinforcing the importance of long-term cross-border energy connectivity.

Amid these developments, there has also been increased attention on Bangladesh’s recent economic engagements with global partners, particularly the United States, following reports of a structured financial and trade understanding aimed at strengthening bilateral cooperation. While specific details have not been fully disclosed publicly, analysts view these efforts as part of a broader strategy led by Professor Muhammad Yunus, Chief Adviser of the Interim Government of Bangladesh, to stabilise the economy, restore investor confidence, and secure critical supply chains. Importantly, there is no indication of exclusivity in these engagements, with Dhaka continuing to actively pursue partnerships with regional players such as India alongside its global outreach. This reflects a calibrated, multi-aligned foreign policy approach that balances immediate economic needs with long-term strategic flexibility.

In parallel, Bangladesh’s evolving external engagements, including its growing economic dialogue with global partners such as the United States, reflect a broader strategy of diversifying trade and investment relationships while maintaining regional balance. At the same time, global powers are increasingly engaging Dhaka as part of wider geopolitical competition in South Asia, particularly in the context of balancing influence in the region.

From an analytical standpoint, experts view Bangladesh’s current approach as a pragmatic multi-vector strategy rather than a shift toward any single alignment. With over 90 percent of its energy needs dependent on imports and ongoing efforts to secure supplies from multiple countries including India, Russia, and others, Dhaka is actively pursuing flexibility in sourcing and partnerships to safeguard its economic stability.

Within this framework, the renewed outreach to India on energy cooperation underscores a balanced foreign policy approach, one that leverages regional proximity for immediate needs while simultaneously maintaining broader global economic linkages. Rather than signalling exclusivity, these parallel engagements highlight Bangladesh’s intent to position itself as a resilient and strategically adaptive economy in an increasingly complex global environment.

As Bangladesh navigates these pressures, strengthening ties with India could play a critical role in ensuring energy security and economic stability in the near term. The latest developments suggest that energy diplomacy may serve as a cornerstone for a broader reset in bilateral relations, with both nations seeking to align economic priorities with regional cooperation in an increasingly uncertain global environment.