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Maria Siow

India’s move to supply Bangladesh with diesel as fuel prices soar amid the Iran war reflects its “first responder” role in the region and clout through the use of its critical commodities to deepen ties with neighbouring states.
If the fuel shortages were to persist, however, India would have to balance between its own energy demand and that of its neighbours, according to observers.
Bangladesh will be importing 45,000 tonnes of diesel from India by April, with 5,000 tonnes having been delivered so far and more arriving via the 131.5 km India-Bangladesh Friendship Pipeline, according to Indian media reports.
New Delhi’s foreign ministry spokesman Randhir Jaiswal said last Thursday that India had received a request for oil from Bangladesh.
The call came amid a looming global energy crisis, with Iran maintaining a chokehold on global crude oil supply through the Strait of Hormuz, even as it allows passage of ships from certain countries, such as India.
Apart from directly engaging with Iran’s leadership, India’s neutrality in the war has helped ensure the safe passage of its commercial vessels through the strategic waterway, according to analysts.

Jaiswal told a press conference that Delhi was also reviewing a request for diesel supply from other neighbouring countries, including Sri Lanka and the Maldives. India had been a major exporter of refined petroleum products to its neighbours and supplied Bangladesh with diesel since 2017, he added.
Aditya Gowdara Shivamurthy, an associate fellow at the Observer Research Foundation think tank’s Strategic Studies Programme, said India was capitalising on the economic impact of the Middle East conflict to present itself as a “first responder” in helping neighbours cope with their fuel crises.
This was a critical aspect of India’s “Neighbourhood First” policy, as shown when it previously provided economic aid to Sri Lanka and the Maldives and vaccines to several South Asian countries during the Covid pandemic, Shivamurthy said.
“This goodwill gesture continues to reflect India’s interests – namely, being a responsible regional power, [providing] goodwill help to smaller neighbours, ensuring stability of the region, and minimising the opportunity for extra-regional powers to enhance their presence and influence.”
Launched in 2014 by Indian Prime Minister Narendra Modi, the policy is aimed at fostering closer regional cooperation, such as trade and infrastructure development, between India and its South Asian neighbours.
Prateek Joshi, a PhD candidate at Oxford University researching India’s foreign policy, said India was one of the few nations allowed to import oil from Russia and use the Strait of Hormuz during the ongoing Middle East war.


“Irrespective of political parties in power, India continues to prioritise support to its immediate neighbourhood in times of crisis,” he said, but noted that Delhi could not overlook its domestic diesel requirements at a time of global shortage.
“If the present crisis continues, India has to balance its demands with how much it exports.”
Sriparna Pathak, a China studies and international relations professor at the O.P. Jindal Global University’s Jindal School of International Affairs, said concerns had been raised in India over exports of its refined fuel amid the supply crunch affecting the region and beyond.
This has prompted some refiners to suspend exports on certain cargoes, even though the government has no plans to curb shipments or release strategic reserves, according to Pathak.
Nothing that India had been sourcing for alternative oil supplies from the US and Latin America, she added: “To tackle such [supply] concerns, India has ramped up Russian crude purchases ... been maintaining domestic sufficiency without restricting exports unless an actual supply shock occurs.”
The US administration recently granted India a temporary 30-day waiver to purchase stranded Russian crude oil already at sea as part of efforts to help “take a little pressure off” volatile global energy markets.
India maintains strategic petroleum reserves and commercial stocks to cover about 74 days of crude oil and petroleum product needs in case of supply disruptions, according to the government’s parliamentary statements issued in early 2026.

Diesel diplomacy
Ties between Delhi and Dhaka have been strained since late 2024, after the ousting of Bangladeshi long-time leader Sheikh Hasina, who is now living in India.
Relations also nosedived due to rising anti-India sentiment in Bangladesh and violent protests against Indian missions, causing both sides to suspend visa applications and cool diplomatic contacts.
However, tensions thawed after Bangladesh’s general election and the formation of a new government in Dhaka last month.
The bilateral cooperation is most visible in the energy sector. Apart from the India-Bangladesh Friendship Pipeline, Indian companies have been supplying electricity to Bangladesh and are developing a thermal power plant in the Bangladeshi city of Khulna.
Noting that “the ice has finally started to melt”, Shivamurthy said India’s supply of diesel to its neighbour would accelerate the process of normalisation between the two countries and spur other neighbours to deepen energy cooperation with Delhi.


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People refuel their motorbikes at a gas station in Dhaka on Tuesday. Authorities in Bangladesh have imposed a daily limit on fuel sales to conserve electricity. Photo: AFP

Oil tankers and cargo ships line up in the Strait of Hormuz as seen from Mina Al Fajer, the United Arab Emirates, on Wednesday. Photo: AP

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Being a ‘first responder’ in the current energy crisis is in line with India’s ‘Neighbourhood First’ policy


Being a ‘first responder’ in the current energy crisis is in line with India’s ‘Neighbourhood First’ policy.


India steps up regional energy diplomacy, supplies Bangladesh with diesel

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Being a ‘first responder’ in the current energy crisis is in line with India’s ‘Neighbourhood First’ policy

Being a ‘first responder’ in the current energy crisis is in line with India’s ‘Neighbourhood First’ policy