Bangladesh LPG Autogas Station Owners Association demanded a business-friendly policy support in the upcoming budget to help flourish the auto gas industry as a green fuel sector which has an investment of Tk 10 billion.
The business leaders urged the National Board of Revenue (NBR) to review 7.5 percent value added tax (VAT) on auto gas as the government pledged to promote the environment-friendly fuel like liquefied petroleum gas (LPG).
The two-day Asia Regional Conference of the World LPG Association ended at the International Convention City Bashundhara (ICCB) in the capital on Wednesday.
On the first day, Mohammad Serajul Mawla gave a presentation on the present and future of the LPG Autogas sector.
Mawla said that there were 800 auto gas stations in the country whose monthly consumption was about 12,000 tonnes. According to the trade body, another 200 new stations are currently under construction. President of the association said that despite the shortage of natural gas in Bangladesh, it was being used as CNG (converted natural gas) for transportation which had no economic role.
“Using LPG in the transport sector is on the one hand environment friendly while it is possible to reduce the wastage of natural gas and make value addition to the industry,” Mawla added.
At present, LPG is used as fuel in around 1 lakh private cars, microbuses and three-wheelers across the country. “Government and private sector initiatives are needed to expand the LPG autogas sector as an environment-friendly fuel. And in this regard the Autogas Station Owners’ Association wants to work together with the government,” Mawla observed.