CNG station owners demand commission hike, threaten movement if demands not met by July 1

The Bangladesh CNG Filling Station and Conversion Workshop Owners Association has demanded an increase in commission on gas sales from the current Tk 8 per cubic metre to Tk 13.96. The organisation has also called for an automatic mechanism to adjust commissions in line with future increases in electricity bills and other operational costs.

Association leaders said the sector is now mired in deep financial crisis as operational costs have risen over the years without a corresponding increase in commission.

The demands were raised at a press conference in the capital's Bijoy Nagar on Saturday, June 6. The leaders warned that if no effective steps are taken by June 30, new programmes will be announced from July 1.

In a written statement, association general secretary Farhan Noor said electricity prices have been increased seven times since 2015, but the commission for CNG station owners was not adjusted proportionally. Electricity bills, equipment maintenance, employee salaries and other operational costs have risen significantly, but station owners have been unable to pass on those costs to consumers as the selling price is fixed by the government. As a result, operating CNG stations has become increasingly impossible.

He said a ministry had recommended in 2013 that owners' commission be increased by Tk 2.98 and that any future electricity price hike be automatically adjusted with the commission. However, only Tk 1 was added to the commission, while the remaining Tk 1.98 was never implemented over an entire decade.

According to the association's calculations, an additional Tk 2.46 is needed on top of the current commission just to absorb the impact of electricity price hikes. Additionally, an extra Tk 3.50 is required to adjust for high inflation across the country, increased minimum wages for employees, depreciation of the taka against the dollar and soaring equipment prices.

The current commission must be increased by Tk 5.96 to Tk 13.96 per cubic metre, otherwise the sector cannot be sustained, they said.

The station owners expressed anger over rising operational costs, including land and access road lease fees from the Roads and Highways Department, licence renewal fees, equipment maintenance, employee salaries, bank guarantee fees and interest, inflation and dollar price hikes. Many CNG stations are now facing huge losses and are on the verge of closure.

The association general secretary said government committees and ministries have acknowledged the legitimacy of these demands over the past decade and made multiple recommendations, but bureaucratic complications have prevented most from being implemented. Even after the recent change of government, issues have been raised with the energy division and regulatory bodies, but no effective progress has been seen despite repeated assurances.

Farhan Noor said the government must accept their legitimate demands by June 30. Otherwise, they will hold discussions with leaders from across the country to decide on the next course of action.