FE Report

The vehicle fuel filling station and conversion workshop businessmen Monday demanded price adjustment of compressed natural gas (CNG) in line with diesel price as the sector faces threats because of the faulty government policy.

Industry insiders said the decision of the immediate past caretaker government to double the price of CNG and reducing the fuel price on two occasions has created the present situation.

They said converting the diesel-run buses into CNG has come to a halt after the price of the diesel was reduced to Tk. 44 from Tk. 55 per litre. As a result, country's 138 conversion workshops are now struggling to keep their businesses running.

Besides, sale at the CNG filling stations outside the capital has also decreased significantly.

The last caretaker government fixed per litre diesel price at Tk 55, petrol price at Tk. 87 and octane price at Tk. 90 when oil price soared to $ 140 per barrel last year in the global market.

The authority also increased the CNG price from Tk. 8 per cubic metre to Tk. 16.75 per cubic metre at that time.

Despite increase in CNG price, on an average 900 to 1000 diesel-run vehicles used to be converted into CNG every month at that time, Bangladesh CNG Filling Station and Conversion Workshop Association President M A Rois Siddique said.

He said even the long-haul transport vehicle started following suit. The private sector buses and trucks started converting into CNG because of high oil price.

But the pace of conversion started to slow down when the government refixed the price of octane, petrol and diesel at Tk. 80, Tk. 78 and Tk. 44 respectively after the oil price came down to as low as $ 38 per barrel, but kept the CNG price unchanged.

Mr. Siddique said: "No conversion took place in April because of high gas price. As a result, the Tk. 20 billion industry is now in peril. It will be tough to keep the business running if the situation continues."

Leaders of Bangladesh CNG Filling Station and Conversion Workshop Association have already held a meeting with the energy ministry but no decision on the reduction of CNG price has yet been taken due to opposition from various companies of Petrobangla, the state-run oil, gas and mineral corporation.

There is no scope to reduce the gas price as there is no supply of gas in line with the demand, Mr. Siddique quoted officials of Titas Gas and CNG companies as saying.

He said the energy ministry has already formed a committee to evaluate the issue and it has started working.

Filling station and conversion workshop businessmen claimed the sector was saving import cost of fuel oil, so the supply of CNG should be continued.

"At the same time, the price of the gas must be adjusted in line with the price of diesel to ensure competitiveness."

Mr Siddque added: "We do not want subsidised price. Rather we want the price to be refixed proportionately with fuel oil."

According to Rupantarita Prakritik Gas Company Limited (RPGCL), around 100 million cubic feet gas is being sold everyday which saves around Tk. 7500 million in the form of fuel import.

Even, the air pollution in various cities including the capital has decreased substantially thanks for using CNG as fuel, the businessmen said.

Currently, over 1,60,000 CNG-run vehicles ply in the country. And the number of CNG filling stationsand conversion workshop now stands at 394 and 138 respectively.