Fuel price hike not imminent: Salehuddin Ahmed

Finance adviser Salehuddin Ahmed has said that the government will wait before making a decision on raising fuel prices, and there will be no immediate increase.

“We are currently monitoring the Iran-Israel war. If the conflict drags on, it will have an impact on us,” the adviser said.

The finance adviser said this while answering a query from a newsperson on whether the government is going to adjust fuel price as an impact of the Iran-Israel conflict following a meeting with the Cabinet Committee on Government Purchase at the secretariat today, Tuesday.

The finance adviser said that the existing procurement orders have not been affected. Everything is being closely monitored. He added that the approval for importing liquefied natural gas (LNG) given today is based on previous pricing.

“We’re fortunate to have secured it at the earlier rate,” he said. “There may be some impact in the future.”

Asked whether the government has any alternative plan in case the war drags on, Salehuddin Ahmed said, “The alternative plan is definitely being considered by the Ministry of Power, Energy and Mineral Resources. Because due to the war, not only fuel oil but also fertilizers and ship movements could be affected. Ships passing through the Hormuz Strait could also be impacted. However, it seems the war will not last long.”

Meanwhile, the proposal from the UK-based company Total Energies Gas and Power to import one cargo of LNG was approved by the procurement committee. One cargo equals 33.6 million MMBTU (million metric British thermal units). The total expenditure will be 62.185 billion taka. The price per MMBTU is 15.17 US dollars.

Besides, a proposal for the completion work of a project was canceled at the meeting. This project is titled ‘Emergency rehabilitation and reconstruction of various roads, bridges, and culverts under the Roads and Highways Department in Sunamganj and Habiganj damaged by the 2022 floods.’

Also, at the meeting, the proposal to purchase 30,000 tons of urea fertilizer from Karnaphuli Fertiliser Company Limited (KAFCO) Bangladesh, costing Tk 14.026 billion, was approved. The price per ton is USD 383.25. The total expenditure is estimated at USD 11.49 million.

In addition, a procurement proposal for completion work of drains, gates, guard sheds, and other constructions under a package of the ‘BSCIC Chemical Industrial Park, Munshiganj (Second Revised)’ project was also approved. BDE Limited and Kohinur Enterprise jointly got the contract worth more than Tk 1.15 billion.