CNG filling station owners seek 74.5pc hike in commission

Owners of compressed natural gas (CNG) filling stations across the country have demanded a 74.5 per cent increase in their commission, seeking to raise it to Tk 13.96 per cubic metre from the existing Tk 8.0.
Leaders of the Bangladesh CNG Filling Station and Conversion Workshop Owners' Association made the demand at a press conference held at its office in Akram Tower in the capital's Bijoynagar on Saturday.
The association, which represents around 500 CNG filling stations across the country, also called for an automatic adjustment mechanism to align commissions with future increases in electricity tariffs and other operating costs.
The business leaders warned of launching a tougher agitation programme if their demands are not met by June 30.
In a written statement, they said the government had increased electricity tariffs seven times since 2015, but the commission for CNG filling station owners had remained unchanged.
As a result, operating and production costs have risen significantly over the years, they said.
With the government-fixed retail price of CNG unchanged, station owners have been unable to pass on the additional costs to consumers, putting financial
pressure on the sector.
The association said the Ministry of Power, Energy and Mineral Resources had recommended in 2013 that the commission be increased by Tk 2.98 and automatically adjusted in line with future electricity tariff hikes.
However, only Tk 1.0 was added to the commission, while the remaining Tk 1.98 has yet to be implemented even after more than a decade, it alleged.
According to the association, an additional Tk 2.46 should now be incorporated into the commission to compensate for higher electricity-related expenses.
It also argued that a further Tk 3.50 adjustment is necessary to offset the impact of inflation, increases in minimum wages, depreciation of the local currency, and rising costs of spare parts and operations.
Taken together, these adjustments would require an increase of Tk 5.96 in the existing commission, it said, adding that the sector's sustainability would otherwise be at risk.
The association further noted that lease fees for land and connecting roads under the Roads and Highways Department, licence renewal charges, equipment maintenance expenses, employee salaries and benefits, and bank guarantee commissions have all increased substantially over the years.
Consequently, many CNG filling stations are operating at a loss and face the risk of closure, it claimed.
The association also alleged that several government committees and ministries had acknowledged the validity of its demands and made recommendations over the past decade, but most of those proposals remained unimplemented because of bureaucratic delays.
Farhan Noor, secretary-general of the association, read out the written statement at the press conference.
Association president Manoranjan Bhakta and other leaders, including Humayun Kabir Bhuiyan, Syed Sadat Ahmed and Tanveer Rahman, were also present.

azizjst@yahoo.com