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CNG saves $800m worth imported fuel a year

Sharier Khan
The use of compressed natural gas (CNG) in the transport sector has not only reduced carbon emission but also is saving over $800 million worth of petroleum import annually, Petrobangla sources say.
However, rapid expansion of CNG delivery network in the last few years has significantly contributed to instability of gas supply pressure in many areas.
This instability is now seriously affecting the gas-based activities ranging from power generation to CNG delivery services, the sources add.
There are around 250 CNG refuelling stations in the country and 121 conversion workshops serving around 138,000 converted vehicles.
Every month, CNG transports are consuming 58 14 million cubic metres of gas equivalent to 69.77 million litres of petrol and octane, the import cost of which is equivalent to $67.77 million per
. month or $813.29 million a year. Presently, 14 more CNG refuelling stations are under construction and the government has taken up a project to install 26 more stations under Dhaka Clean Fuel Project funded by the Asian Development Bank.
These stations will be set up on six highways -- Dhaka-Chittagong, Dhaka-Sylhet, Dhaka-Mymensingh, Dhaka-Aricha, Dhaka-Sirajganj-Bogra and Dhaka-Mawa.
Under the Clean Fuel Project, Rupantarita Prakritik Gas Company Ltd (RPGCL) of Petrobangla would import and hand over 5,000 CNG kits and 6,000 cylinders to private entrepreneurs running 100 CNG-driven buses on commercial basis.
Introduced in 2003 through the Clean Fuel Project, CNG services revolutionised the country's transport sector and helped improve the air pollution situation caused by carbon monoxide and other harmful gas emission from motor vehicles, especially two-stroke engines that use diesel and petrol.
"The air of Dhaka was mainly polluted
by emission from three-wheeler autorickshaws, motorcycles and diesel-run buses. The air should not have any sul phur. But such emission dangerously added sulphur in our air," says an official.
He adds the dark smoke these vehicles emitted was causing many complicated diseases like respiratory problems, eye and heart diseases.
For consumers, the use of CNG has drastically cut down fuel cost as the government initially offered a very low sale tariff of Tk 7 per cubic metre. Though this price has now increased toTk 16.75 per cubic metre, it still keeps using CNG instead of petroleum much more profitable.
Sources say the CNG Filling Station Owners Association on Monday met the energy adviser to the prime minister and asked the government to reduce the CNG tariff as the owners are "facing huge loss".
They add in some places, there are additional CNG stations, which are affecting the financial outcome of all the stations in those areas. There are excessive stations on the Dhaka-Chittagong Highway, they note.
The fuel station owners also complain about gas pressure issues. Citing an example, they say a customer's CNG fuel tank, which can accommodate 12 cubic metres if there is 200 pressure square-inches (PSI) gas, is practically being filled with 10 cubic metres or less due to much lower pressure.
The unhappy and cheated customers blame the station owners, although they were not at fault, the owners say.
It was said at the meeting that the initial tariff was highly subsidised with a view to encouraging people to use CNG instead of conventional fuel. When the government increased the tariff later, it overlooked the filling station owners' perspective.
The adviser has decided to form a committee under the ministry with representatives from the association to scrutinise the tariff and recommend its adjustment, and also see if the stations should be allowed to be set up in different zones with certain limits.