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Current Affairs

Bangladesh’s energy crisis opens door for India to mend ties

Bangladesh’s request for additional diesel from India has turned a growing power crisis into a potential opening for the two neighbours to repair ties strained…

By Samantha Johnson / August 19, 2026
Bangladesh’s request for additional diesel from India has turned a growing power crisis into a potential opening for the two neighbours to repair ties strained in part by the continuous self-exile of ex-prime minister Sheikh Hasina in New Delhi and Dhaka’s repeated requests for her extradition.

India confirmed on Friday that it was examining Dhaka’s request for extra fuel as Bangladesh ordered shops, malls and markets to close by 8pm to conserve power, with hospitals, pharmacies and restaurants exempted.

The request could give Delhi and Dhaka a chance to rebuild trust following Hasina’s ousting in 2024 even as tensions over her stay in India, Bangladesh’s outreach to Pakistan and China-linked projects continue to complicate ties between the two neighbours.

“We have an ongoing arrangement with Bangladesh for supply of diesel. This continues,” Randhir Jaiswal, India’s foreign ministry spokesman, told reporters.

He added that the additional request for diesel “will be examined keeping in mind our own requirement, our refining capacity, as also the availability of diesel here in our country”.

Under an existing 15-year agreement, India supplies Bangladesh with 180,000 tonnes of diesel annually. Bangladesh has been getting diesel from India through the India-Bangladesh Friendship pipeline since 2017.

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