The Bangladesh CNG Filling Station and Conversion Workshop Owners Association has demanded an increase in the commission paid to CNG filling station owners from the current Tk 8 per cubic metre to Tk 13.96.
The association also called for an automatic adjustment mechanism to align commissions with future increases in electricity tariffs and other operating costs.
The demand was announced at a press conference held on Saturday at Akram Tower in Bijoynagar, Dhaka.
CNG business leaders warned that if the demand is not met by June 30, they will be compelled to launch strict nationwide programmes from July 1.
In a written statement, CNG Association secretary general said that although the government has increased electricity prices seven times since 2015, commissions for CNG station owners have not been adjusted accordingly.
As a result, production and operational costs have risen steadily, while government-fixed retail prices have prevented station owners from passing the additional costs on to consumers.
They argued that operating CNG filling stations has become increasingly difficult due to mounting expenses and inadequate commission rates.
The leaders further noted that in 2013, the Ministry of Power, Energy and Mineral Resources recommended increasing the commission for CNG station owners by Tk 2.98 and introducing an automatic adjustment mechanism linked to future electricity tariff hikes. However, only Tk 1 of the recommended increase was implemented, while the remaining Tk 1.98 has remained unaddressed for more than a decade.
Presenting a breakdown of their demand, the association stated that an additional Tk 2.46 per cubic metre is required to compensate for higher electricity costs. Furthermore, rising inflation, increases in minimum wages, depreciation of the local currency, and higher prices of spare parts and operational inputs necessitate an additional adjustment of Tk 3.50.
According to the association, these factors together justify an increase of Tk 5.96, bringing the total commission to Tk 13.96 per cubic metre. Without such an adjustment, they warned, the sector’s sustainability would be at serious risk.
Station owners also expressed frustration over soaring operating expenses, including lease fees for land and access roads under the Roads and Highways Department, licence renewal costs, equipment maintenance expenses, employee salaries and benefits, bank guarantee charges, interest payments, inflationary pressures, and the rising value of the US dollar.
They claimed that many CNG stations across the country are currently operating at significant losses and face the prospect of closure while continuing to sell gas at government-fixed prices.
The association alleged that although several government committees and ministries have acknowledged the legitimacy of these demands and made recommendations over the past decade, most proposals have remained unimplemented due to bureaucratic delays.
They added that following the recent change in government, the association has repeatedly engaged with the Energy Division and relevant regulatory authorities to seek solutions. However, despite repeated assurances, no meaningful progress has been made so far.
Concluding the press conference, the association leaders expressed hope that the government would address their demands by June 30 after considering the overall situation. Otherwise, they said, they would be forced to announce strict nationwide programmes from July 1 to protect the interests and survival of the CNG sector.
Highlighting the importance of CNG as an environmentally friendly fuel, the owners noted that it has long played a significant role in reducing air pollution, enhancing energy security, and keeping public transportation affordable for ordinary people. They stressed that revising the commission structure is now essential for ensuring the long-term sustainability of this promising sector.