CNG-filling stations in dire straits due to turmoil
Rezaul Karim | Tuesday, 17 March 2015
Owners of country's 590 CNG-filling stations are in dire straits with their investment worth Tk 30 billion due to prolonged blockade and frequent shutdowns, industry insiders said.
"Earlier there was sale worth Tk 57 million to 60 million a day at each station on an average which has now declined to Tk 7.0 million to 10 million per day," Convener of Bangladesh CNG Filling Station and Conversion Workshop Owners' Association Masud Khan told the FE Monday.
"We have to incur a significant amount of loss per day as our sales have declined," he said.
"We have demanded of the government to waive interest on the payment of our bank loans," Mr Khan said adding that they were unable to afford to pay salaries of their employees due to the fall in their business.
"Since we incur substantial losses everyday, we will fail to pay our loan interest to the banks," he said.
Bangladesh CNG Filling Station and Conversion Workshop Owners' Association sent a letter to the finance minister on Tuesday last. The association placed two-point demands including interest waiver and rescheduling of bank loans.
A senior official of the ministry of finance (MoF) said banks and financial institutions suffer like other business sectors. So, the government will have to take a balanced decision for the sake of the country's overall interest.
"We've invested about Tk 30 billion of which Tk 20 billion came from bank borrowing," a source concerned said.
He said the CNG refuelling stations are annually saving about Tk 120 billion as import substitution through supplying alternative green energy to the motor vehicles and making a big contribution to protecting environment.
Earlier, the authorities concerned have encouraged the CNG sector; but now they seem to have taken a U-turn. "If the government discourages the use of CNG in motor vehicles, it will be detrimental to the environment as well as invite disaster to this sector. About 0.2 million people are directly and indirectly employed in the sector," he added.
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