It's time to say goodbye to CNG vehicles | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 24, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 24, 2025
It's time to say goodbye to CNG vehicles

Bangladesh

Sharier Khan
11 June, 2024, 09:20 am
Last modified: 11 June, 2024, 02:14 pm

Related News

  • Second tanker to skip fuel loading at sanctions-hit Nayara, sources say
  • Overturned container trailer on Cumilla-Sylhet Highway triggers 15-km jam
  • Potholes, poverty and lost time: The real cost of driving in Bangladesh
  • Oil tanker train back on track after 11 hours of derailment in Ctg
  • Inclement weather halts water transport on Bhola-Lakshmipur route

It's time to say goodbye to CNG vehicles

Industries that make the most valuable use of natural gas, have remained severely compromised by the gas crisis

Sharier Khan
11 June, 2024, 09:20 am
Last modified: 11 June, 2024, 02:14 pm
Photo: Pexels
Photo: Pexels

Back in 2001-02, Bangladesh was "floating on gas". At least that's what a section of experts and oil companies were saying. A few years before that, the US company Unocal had discovered the massive Bibiyana gas field and they were saying Bangladesh did not have enough consumers to justify the development of such a big field. Unocal was asking the government to allow it to export the gas to India.

At that time the Asian Development Bank (ADB) was funding a government project named "Clean Fuel Project" to introduce the use of compressed natural gas (CNG) in the transport sector. We have surplus gas while we import huge amounts of liquid fuel to run our transport sector. If we use CNG instead of diesel and petrol – we not only save a lot of import cost, but also save the environment as CNG was way cleaner than liquid fuel.

Everybody loved CNG…while it lasted 

The CNG project was a massive hit upon its introduction in 2002-03 simply because it was way cheaper as an alternative fuel, and also because it opened up new business opportunities for CNG conversion and pumping stations. Hundreds of stations were set up while lakhs of motor vehicles and three wheelers were converted to run on CNG within a few years.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

By the end of that decade, CNG was saving $800 million worth of petroleum imports, according to Petrobangla.

All the while, the rapid expansion of the CNG delivery network had significantly contributed to the instability of reliable gas supply pressure by 2010.

By that time, the Bibiyana gas field was producing large amounts of gas for the local market. Bangladesh was never floating on gas and it was reeling from gas supply shortage.

The CNG sector was consuming one-tenth of the 2,000 million cubic feet of gas per day (mmcfd). But there was already a demand shortfall by 400 mmcfd. This prompted the government to stop new gas connections for all consumers. Some industrial connections were approved under special considerations.

The restrictions are still there because our demands could never be fully met with the depleting supplies.

The demands also kept growing significantly due to the country's rapid pace of development. This forced the government to begin import of Liquefied Natural Gas (LNG) at a high cost from 2018-19. This imported LNG is mixed with the local gas and supplied to the national grid so that the gas-dependent industries and other consumers can keep running.

In the last one decade, there has not been any significant new oil and gas discovery. As a result, the local share of gas supply has been steadily falling for the last four years. Today, the government is able to supply a maximum of around 3,000 mmcfd gas – of this, 600 to 800 mmcfd comes from imported LNG.

But what about the demand side? The demand for gas in 2010-11 was 2,400 mmcfd. This should have crossed 5,000 mmcfd today because our annual demand growth had steadily been around 10%.

As a result, we have a huge gas deficiency which is affecting our power generation where we have enough capacity to meet our future demands for close to a decade.

Industries adding most value suffer most from gas shortage 

Industries that make the most valuable use of natural gas by producing products ranging from power, fertiliser and commodities for exports and local markets, have remained severely compromised by the gas crisis. They are now trying to find alternatives to gas.

Bangladesh's export earnings of $55 billion in the last fiscal year were possible because of the gas supply backbone. The bulk part of the whole internal economy is also dependent on gas supplies. Yet, these are unable to operate optimally due to the gas crisis.

Despite the crisis, the use of CNG is still growing. The government hiked the rate of CNG several times. Whereas it used to cost around Tk16 per unit decades back in 2010, CNG today costs Tk43 per unit. It takes hours of waiting for vehicles to refill their CNG tanks. In addition, the users always complain that the units are not pure gas and are often mixed with air because the CNG stations cannot pump in the gas at a desired gas pressure. Long queues of CNG vehicles from filling stations snake through the city roads contributing to the nagging traffic congestion.

CNG vehicles not cost effective anymore 

Why the farce then? The CNG is no longer cost effective and it has huge waiting time and, all in all, we have not enough gas for even the industries that fetch the nation money and provide the most jobs.

Today we have 525 CNG stations across the country, refuelling 1 million vehicles daily. Due to the gas crisis, their consumption has dropped to 125 mmcfd from 200 mmcfd in 2010.

The biggest irony is that the CNG culture did not even ensure any environmentally friendly "Clean Fuel" regime. Dhaka's air is among the world's worst. Although CNG is cleaner than diesel or petrol, it still emits harmful gases.

In the last two decades, Bangladesh has transformed drastically. Today, we are looking at emission-free electric vehicles, solar and wind power to cut our dependency on imported energy. At the same time, new homes now come equipped with Liquefied Petroleum Gas (LPG) kitchen solutions instead of the piped gas connections of decades ago.

But we are still oblivious to the existence of CNG vehicles.

It's high time the government considers a policy to phase out CNG vehicles. The nation needs to adapt to the hard realities of not having enough gas. Unless the government changes its policy, the folly with CNG will continue only to aggravate high-value gas users' woes.

Sharier Khan, journalist. Sketch: TBS
Sharier Khan, journalist. Sketch: TBS

 

Top News / Energy

CNG / fuel / transport

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Representational image. Photo: Collected
    Tariff issue: Bangladesh, US set for crucial virtual meeting on 29 July - not tommorow
  • Milestone tragedy: CID confirms identities of 5 victims using DNA samples
    Milestone tragedy: CID confirms identities of 5 victims using DNA samples
  • Rescue workers carry out operations at Milestone School and College following the BAF fighter jet crash on 21 July 2025. Photo: Mehedi Hasan
    Most victims in Milestone crash are students under 15

MOST VIEWED

  • Photo: Collected
    Bangladeshi man jailed for life in UK for murdering wife in front of their baby
  • Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
    Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
  • Fire at Cosmo School in Mirpur on 23 July 2025. Photo: TBS
    Fire breaks out at Cosmo School in Mirpur following generator explosion
  • Representational image. File Photo: Rajib Dhar/TBS
    Debate arises as edu adviser says postponed HSC exams of 22 and 24 July will be held on same day
  • BB issues dress code for all, discourages short-sleeved or length dresses, leggings for female staff
    BB issues dress code for all, discourages short-sleeved or length dresses, leggings for female staff
  • Infographics: TBS
    Stay orders won’t shield defaulters: BB governor 

Related News

  • Second tanker to skip fuel loading at sanctions-hit Nayara, sources say
  • Overturned container trailer on Cumilla-Sylhet Highway triggers 15-km jam
  • Potholes, poverty and lost time: The real cost of driving in Bangladesh
  • Oil tanker train back on track after 11 hours of derailment in Ctg
  • Inclement weather halts water transport on Bhola-Lakshmipur route

Features

Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

18h | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

2d | Panorama
Photo: Mehedi Hasan/TBS

Mourning turns into outrage as Milestone students seek truth and justice

1d | Panorama
Illustration: TBS

Uttara, Jatrabari, Savar and more: The killing fields that ran red with July martyrs’ blood

2d | Panorama

More Videos from TBS

Jamaat Ameer's statement misleading: Chatra Dal general secretary

Jamaat Ameer's statement misleading: Chatra Dal general secretary

28m | TBS Today
Dollar gets upward push as BB buys $10m more in auction at even higher rate

Dollar gets upward push as BB buys $10m more in auction at even higher rate

1h | TBS Insight
Why is Korniya called the Jamdani Sari girl?

Why is Korniya called the Jamdani Sari girl?

18m | TBS Programs
'Brahmanbaria has always been deprived because it fought against fascism'

'Brahmanbaria has always been deprived because it fought against fascism'

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net