Saturday, June 22, 2024

Increase commission on CNG sales by Tk 5.10 per cubic metre

Filling Station Owners Demand Increase in Commission Rates for CNG Sales

The owners of compressed natural gas (CNG) filling stations in Bangladesh are facing a tough battle for survival. In a recent press conference, the Bangladesh CNG Filling Station and Conversion Workshop Owners’ Association leaders demanded a significant increase in their commission on fuel sales. They are asking for a raise of Tk 5.10 per cubic metre, a 63.75% increase from the current Tk 8 per cubic metre.

The association leaders highlighted the challenges they are facing, including adjusting losses against power tariff hikes since 2015 and the impact of current market prices and inflation. They emphasized that despite policy recommendations, the government has not adjusted the commission on CNG sales to account for rising costs.

The rising production costs from piped natural gas, coupled with increasing power tariffs, have put a strain on CNG filling stations. The costs of maintaining a filling station have doubled over the past decade, with expenses such as land lease costs, municipality taxes, salary hikes, and currency volatility adding to the financial burden.

As a result, many CNG filling stations have been forced to shut down operations in recent years. The association is now fighting for their survival and has reached out to the Bangladesh Energy Regulatory Commission and the Energy and Mineral Resources Division to address their concerns.

The plight of CNG filling station owners sheds light on the challenges faced by small businesses in the energy sector. It is crucial for policymakers to consider the impact of rising costs on these businesses and work towards finding solutions that will ensure their sustainability in the long run.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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