Despite trade restrictions, Numaligarh Refinery expects to nearly double diesel exports to Bangladesh

The diesel exports would rise over 85 percent year-on-year in 2025, as per NRL’s expectations.

The Assam-based Numaligarh Refinery Limited’s (NRL) diesel exports to Bangladesh have not been affected so far despite the ongoing trade dispute between India and Dhaka, the company told Moneycontrol on May 20.

On the contrary, NRL expects a sharp uptick in diesel exports to Bangladesh in 2025 to the tune of 130 thousand metric tonnes (TMT), as compared to 70 TMT supplied to the neighbouring country in 2024. The diesel exports would rise over 85 percent year-on-year in 2025, as per NRL’s expectations.

“Our expectation for the current calendar year is to supply 130 TMT diesel to Bangladesh in line with the quantity allocation from Bangladesh Petroleum Corporation (BPC). In the next calendar year (2026), NRL expects to supply the quantity as would be finalised during the quantity allocation meeting with BPC this year,” the company told Moneycontrol.

NRL had signed a 15-year, long-term sale and purchase agreement in 2017 with Bangladesh Petroleum Corporation (BPC) for the export of HSD (high speed diesel). The orders delivered to the country are part of the same agreement.

Citing company’s managing director Bhaskar Jyoti Phukan, Moneycontrol had reported in February that NRL expects Bangladesh's appetite for diesel to grow in financial year 2025-26 (FY26).

NRL, a subsidiary of the state-run Oil India Limited (OIL), exports diesel and paraffin wax to Bangladesh. The company largely exports diesel to the neighbouring country through the pipeline connecting its Siliguri marketing terminal with Parbatipur in Bangladesh; the wax supplied is of minuscule quantities as of now.

In the last calendar year 2024, NRL supplied 70 TMT of diesel to Bangladesh against allocation of 60 TMT, the company said. It expects to supply the entire allocated quantity of 130 TMT in 2025.

Regarding payments, the company informed of no dues against diesel deliveries to Bangladesh. “Payments against diesel exported by NRL to Bangladesh are settled in USD through irrevocable Letter-of-Credits (LCs). Therefore, the chances of default in payment are not there,” said NRL.

Trade tensions between New Delhi and Dhaka have been rising ever since Bangladesh’s interim advisor Muhammad Yunus called India’s northeast as a “landlocked region.”

Last week, the Indian government imposed new restrictions on imports from the neighbouring country, affecting over 40 percent of the trade. The government curtailed land access to specific goods like readymade garments, which can only be imported via two sea ports.