Govt tracks global oil risk No price hike for now

Staff Reporter :

Finance Adviser Salehuddin Ahmed has said that while the government is closely observing the escalating conflict between Iran and Israel, there are currently no immediate plans to increase domestic fuel prices.

Speaking to reporters on Tuesday at the Secretariat following meetings of the Advisory Council Committee on Economic Affairs and the Advisory Council Committee on Government Procurement, Ahmed acknowledged the upward pressure on global oil prices. However, he assured that Bangladesh’s fuel shipments have so far remained unaffected.

“We are monitoring the Iran-Israel war closely. Although international prices have begun to rise slightly, our previously ordered fuel consignments have not been disrupted. If the conflict drags on, it may eventually create some pressure on us,” he stated. The ongoing hostilities between Iran and Israel have triggered volatility in global energy markets, with crude oil prices reacting to the heightened geopolitical tensions. Of particular concern is the Strait of Hormuz-a critical passageway for global oil and LNG shipments.

Any disruption to this maritime route could have serious implications for energy-importing countries like Bangladesh. On LNG and gas procurement, Adviser Ahmed noted that recent approvals for LNG imports were secured at pre-conflict rates, shielding the country from immediate cost escalations. “The LNG imports cleared today were approved at earlier prices, so we’ve avoided additional financial strain for now,” he explained. However, he cautioned that any future procurement could be affected if prices continue to climb.

Ahmed also dismissed concerns over immediate trade disruptions stemming from the conflict. “At this point, we do not anticipate any major trade disruptions. But if the war continues, we may see price increases across energy, fertiliser, and shipping services,” he said.

He added that the government is taking precautionary steps and is exploring alternative procurement options should the situation worsen. “The LNG and fertiliser procurement proposals approved today reflect earlier pricing. If the conflict drags on and we need additional supplies, we might face higher costs,” he added.

Bangladesh remains vulnerable to external shocks in the energy market due to its reliance on imported LNG and petroleum. Rising global energy costs not only threaten to undermine inflation control but could also place additional strain on public finances and industrial output.

In response to a question on contingency plans, the adviser said the Ministry of Energy is actively considering alternative energy sources. “Given our dependency on LNG, the Energy Ministry is exploring other options to diversify supplies,” he noted. He also warned that prolonged geopolitical instability could affect sectors such as fertilisers and shipping, especially if global maritime routes are disrupted.

In conclusion, Ahmed adopted a measured tone, saying: “We’re not considering any fuel price hikes at this point. We’re adopting a wait-and-see approach and hoping the conflict does not escalate further.”
Nonetheless, rising global concerns over a potential oil crisis continue to cast uncertainty over energy security and economic stability, with many countries, including Bangladesh, bracing for possible ripple effects.