“Finance Adviser says there are currently no plans to increase fuel prices amid the Iran–Israel conflict”

The government is keeping a close watch on the ongoing Iran-Israel conflict but has no immediate plans to raise fuel prices, Finance Adviser Dr Salehuddin Ahmed said on Tuesday.

“We are monitoring the situation. If the hostilities continue, it may create pressure on us. But for now, we are adopting a wait-and-see approach,” he told reporters following meetings of the Advisory Council Committee on Economic Affairs and the Advisory Council Committee on Public Purchase at the new Cabinet Division conference room at the Secretariat.

When asked whether the conflict could impact domestic fuel prices, Dr Salehuddin acknowledged a slight rise in global prices but said it has not affected existing procurement. “There’s already been a modest increase internationally, but it hasn’t impacted the orders we’ve already secured,” he noted.

He added that the government is also keeping an eye on gas and LNG prices.
“If LNG prices surge substantially, we’ll factor that into our future planning. Thankfully, the LNG import proposal we approved today is based on the previous pricing. We’re fortunate to secure it at the earlier rate,” he said.

Asked if trade has been affected, Dr Salehuddin replied, “At present, there’s no impact on trade.”

Regarding any special measures being considered in anticipation of potential disruptions, the adviser said, “The LNG and fertiliser import proposals approved today are at previous rates. However, future proposals could face price adjustments depending on the situation.”

On contingency plans in case the conflict drags on, he said the Energy Ministry is exploring alternative options. “Our dependence on LNG is significant. The conflict could impact not only energy supplies but also fertiliser imports and maritime shipping, particularly through the Strait of Hormuz. However, I don’t expect the war to continue for long.”

When asked if global fuel prices have already climbed, Dr Salehuddin said, “Yes, prices have risen in many countries, but we’re not making any changes yet. We are observing and will decide as the situation evolves.”