CNG filling stations threaten shutdown from Aug. 23 unless commission is increased
Collected Photo
The Bangladesh CNG Filling Station and Conversion Workshop Owners Association has announced a tough protest program against the government’s failure to increase CNG sales commissions for more than a decade despite repeated hikes in gas and electricity prices and persistently high inflation. The organization warned that if its demands are not met, it will observe a symbolic strike on July 30 and shut down CNG filling stations across the country indefinitely from Aug. 23.
The ultimatum and protest program were announced at a press conference held Tuesday afternoon at Akram Tower in Bijoynagar in the capital.
Amiruzzaman Chowdhury, convener of the steering committee formed to implement the movement, read out a written statement at the press conference. Association President Manoranjan Bhakta, Secretary General Farhan Noor and other central leaders of the organization were also present.
The press conference said that the commission for CNG sales has remained unchanged at Tk 8 per cubic meter for nearly 11 years, since Sept. 1, 2015. During this period, inflation, government mandated minimum wages, the appreciation of the US dollar, higher bank guarantee commissions and interest rates, and overall operating expenses have increased severalfold. As a result, station owners say it has become impossible to continue operating CNG stations while incurring losses.
In this context, CNG business owners placed four demands before the government to ensure the sector’s survival. The demands are to increase the current CNG commission from Tk 8 to at least Tk 13.96 per cubic meter, automatically and proportionately adjust commissions in line with any future increase in fuel prices, abolish the practice of collecting additional security deposits from existing customers following gas price hikes, and reduce lease charges for Roads and Highways Department land or access roads as well as license and renewal fees imposed by all government agencies to reasonable levels.
Under the announced program, all CNG filling stations nationwide will remain symbolically closed from 6 am to midnight on July 30. Discussions with the government, however, will continue during this period. If the symbolic strike and negotiations fail to produce a meaningful outcome, all CNG filling stations across the country will be shut down indefinitely beginning Aug. 23.
Central leaders of the organization said they had repeatedly tried to meet with the Minister of Power, Energy and Mineral Resources and the chairman of the Bangladesh Energy Regulatory Commission to directly present their legitimate demands but were unsuccessful.
At the press conference, the association strongly demanded that the commission be increased from Tk 8 to Tk 13.96 per cubic meter and presented two specific justifications. These include adjustments for rising electricity costs, citing a 20 percent increase in monthly electricity bills following the latest tariff hike on June 3, and inflation and operating expenses, including current market conditions, minimum wages for workers and rising foreign exchange rates.
The owners association expressed frustration, saying that the demand for a commission increase is not new. A high level technical committee formed earlier by the ministry and Petrobangla had recommended a final increase of Tk 2.98 in commissions for CNG station owners. However, the Bangladesh Energy Regulatory Commission increased the margin by only Tk 1 in 2015 and left the remaining portion unresolved for the past decade.
Association leaders said that because both the purchase and retail prices of CNG are fixed by the government, they are unable to pass the increased operating costs on to customers. As a result, they said, the environmentally friendly sector, which represents nearly Tk 50 billion in investment, is now facing severe losses and the risk of collapse.
