The government has no current plans to raise fuel prices despite the ongoing conflict between Iran and Israel, Finance Adviser Dr Salehuddin Ahmed said on Tuesday.
Speaking to reporters after a meeting of the Advisory Council Committee on Economic Affairs and the Advisory Council Committee on Public Purchase at the Secretariat’s new conference room, Dr Salehuddin confirmed that the government is closely monitoring the situation.
“We are observing the situation. If the fighting drags on, it may put pressure on us. But for now, we will wait,” he stated.
When asked whether the conflict could impact domestic fuel prices, the adviser noted that there has already been a slight increase in international prices. However, he clarified that this has not affected any of the fuel import orders already placed by the government.
He further added that the government is also keeping a close eye on gas and LNG (liquefied natural gas) prices. “If the LNG price goes up significantly, we will consider that in our planning. Fortunately, the LNG import proposal we approved today is at the old price. We’re lucky to be getting it at the earlier rate,” he said.
Addressing concerns about potential disruptions to trade, Dr Salehuddin assured, “No, there is no impact on trade as of now.”
In response to questions about contingency planning, he said the Energy Ministry is working on alternatives in case the conflict escalates or continues for an extended period.
“We heavily rely on LNG. The conflict could affect not only fuel but also fertiliser imports and maritime transport. Ships travel through the Strait of Hormuz, which could be impacted. But I don’t think the war will last long,” he said.
Asked if fuel prices have already increased globally, he confirmed, “Yes, prices have gone up in many countries, but we are not making any changes yet. We will wait and watch.”
The adviser also mentioned that the LNG and fertiliser import proposals approved on Tuesday were both secured at previous pricing levels, adding that any future proposals might be affected if the conflict continues.