The government has decided to restrict the setting-up of new CNG
stations at some highway points, aiming to discipline the saturated
sector in those areas. "No further permission to set up CNG stations
in the restricted areas will be granted until further notice," the
government said in a recent gazette. However, CNG stations can be set
up in other non-saturated areas by meeting some conditions mentioned
in the notification. Existing petrol pump owners will be able to set
up CNG points at their stations. The government imposed restrictions
on the Dhaka-Chittagong highway that includes Jatrabari to Meghna
bridge, Comilla bypass area, Chauddagram, Feni and Shitakundu. The
Dhaka-Mymensingh road, Tongi Bridge to Joydebpur Cantonment line
road, Sreepur to Mawna, Trishal to Mymensingh town entrance have
been made off-limits to new CNG stations. The areas in and around
Aminbazar bridge to Savar bazaar and Dhamrai bridge to Paturia link
road will also not be allowed to set up any new CNG station. Further
spots named in the gazette that will not be allowed to establish new
CNG stations include Nabinagar to Chandra intersection, Kaliakoir-
Tangail-Alenga and Sherpur to Barura bypass of Dhaka-Bagura highway
and Sirajganj to Pabna road. Prospective entrepreneurs can set up CNG
stations by meeting some conditions in other areas, but each new
station must maintain a distance of at least 3 kilometres, if on the
same side of the road. For new stations on opposite sides of the
road, each station must maintain a distance of at least 2
kilometres. The restriction on the distance between two stations can
be relaxed for existing petrol pump owners and anyone holding land in
Dhaka and Chittagong metropolitan areas with government permission
to set up a CNG station. A total of 468 CNG filling stations across
Bangladesh offer services to 170 ,405 CNG run vehicles, according to
Rupantarita Prakritik Gas Company Ltd (RPGCL). Abdullah Al Mamun,
finance secretary of Bangladesh CNG Filling Station and Conversion
Workshop Owners Association, said the government initiative is
positive. "But this initiative will not make sense if CNG prices are
not cut." He said large vehicles find CNG to be cost- effective
despite CNG prices doubling to Tk 16.75 a cubic metre last year, as
diesel was priced at Tk 55 a litre. But vehicle owners find it less
cost effective to use CNG after two downward adjustments left diesel
prices standing at Tk 44 a litre. Shafiul Azam, managing director of
RPGCL, said CNG stations in some places have become saturated,
putting squeezes on business.