CNG stations in Bangladesh demand commission hike

The country’s compressed natural gas station owners have demanded their commission on CNG sales be increased by Tk 5.10, or 63.75 per cent, per cubic metre, from the existing Tk 8.

Of the total hike demanded, Tk 1.60 per cubic metre is for adjusting losses from power tariff hikes on different occasions since 2015, and Tk 3.50 per cubic metre in consideration of current market prices, including inflation.

Bangladesh CNG Filling Station & Conversion Workshop Owners Association leader placed their demand during a press conference held in its office Sunday morning.

Speaking on the occasion, the association’s President Manoranjan Bhakta alleged that despite policy recommendations, the government has not adjusted the commission on CNG sales to cope with the rising power tariff since 2015.

CNG production costs from piped natural gas have increased by Tk 1.60 per cubic metre over the past decade since 2015, only due to power tariff hikes, he said.

Citing an example, the association’s Secretary General Farhan Noor said the power tariff of a CNG filling station was Tk 3.45 per unit (1 kilowatt-hour) in 2014, and now it stands at Tk 5.04 per unit after several hikes.

CNG sales at the filling stations have also dropped significantly over the past decade, he said, adding that a CNG filling station that would sell around 96,093 cubic metres of CNG in 2015 currently sells around 66,718 cubic metres.

Original story CNG filling station owners demand 63.75pc hike in commission | The Financial Express