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Auto gas policy finalised without fixing price formula

Without fixing the pricing formula for auto gas, the government has issued circular for Liquefied Petroleum Gas (LPG) or auto gas, establishment of re-fueling station and conversion workshop, its operation and maintenance policy-2016.

The policy has been formulated to replace CNG with LPG or auto gas as the fuel for the vehicles as the reserve for natural gas is on the wane.

The recently released circular said, the re-fueling station owners have to sell auto gas as per the price and standard fixed by the government. The officials of the Energy and Mineral Resources Division (EMRD) however are still in the dark about how to fix the price and standard for the gas.

Though around 50 lakh LPG cylinders are sold across the country for usage in household and commercial purpose, the government is yet to set any price for LPG. Besides, there is government fixed provision for selling cylinders bottled by the state owned entity at Tk 750 per cylinder but in reality the price is way more than that in the market.

The government circular also said that instead of octane, petrol and diesel for the vehicles, LPG gas has gained popularity across the world as an environment-friendly fuel.

The cost of using LPG in the vehicles is lower than the fossil fuel. It is also possible to save a huge amount of foreign currency by using auto gas instead of conventional liquid fuel. To ensure the distribution of auto gas and to ensure security, there must be a policy.

The recently circulated policy has been formulated to ensure that.

The policy said that no person or organisation can establish any auto gas re-fueling station or auto gas conversion workshop or take part in its operation or maintenance without the approval of the government.

The government will have the right to cancel the approval of any auto gas refueling station or conversion workshop if it breaks any conditions, law or regulations mentioned in the policy.

If a joint venture company is formed along with a foreign company, then the company has to complete its registration with the Board of Investment (BoI) and the existing government rules and regulation regarding that will be applied in that case.

For establishing auto gas station, the distance between two gas stations on the same side of the road inside a city corporation and district town should be at least two kilometers and it should be four kilometers otherwise.

For establishing auto gas station on the opposite side of the road, the distance between two gas stations inside a city corporation and district town should be at least one kilometer and it should be two kilometers otherwise.

The government, under special circumstances can relax the conditions here.

Without getting approval and license from the Department of Explosives, establishment of new stations or changes/extension and addition/removal in the old establishment cannot be made.

For the approval, a station must have the license issued by the Department of Explosives along with the station plan, license and approval from the Bangladesh Energy Regulatory Commission (BERC), the certificates and the copy of the certificates of the employed persons and the no-objection certificate (NOC) from the Fire Service and Civil Defense (FSCD).

The auto gas re-fueling station has to be established within a year of getting the primary approval.

Any person or organisation will get the approval of auto gas workshop if it is established within 100 meter of the bus stand and bus terminal. Besides, there are several other condition by fulfilling which, anyone can get the permission to establish the workshop, said the policy.

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