Editorial
CNG price rise
The fallout needs to be tackled carefully
Agreat sense of relief motorists and transport owners have so far derived amidst high prices of octane, petrol and diesel from the low CNG price tag. But that relieving spot has been somewhat taken away by the doubling of CNG price now. Some upward adjustment in CNG price was inevitable, if the books of Bangladesh Petroleum Corporation (BPC), or for that matter, the subsidy budget of the government, were to be balanced. Yet raising the price by hundred percent by one single stroke is something that can have a shock effect on the road transport sector that is associated with environment-friendly use of fuel.
Admittedly, even after the CNG price hike it remains affordable at less than half the cost of octane which previously was one fourth of the gasoline cost overall.
Since the CNG price is not subsidised by the government and a realistic price is being charged from the consumers, they would now demand their money's worth in terms of services. They will pay the higher price and still stand in queues for long hours wasting is not the predicament they would like to suffer any more. The government must offer permission to the private sector to open more CNG filling stations to be in steps with the speed with which conversion to CNG is taking place. Let's not forget that the rapid increase in CNG use had already eased pressure on the fuel import bill of the government. We can see that the CNG fuel station owners have been directed by the government to procure generators to ease the plight of CNG users, so badly compounded by frequent power failures. This step needs to be followed up on to ensure compliance by the owners of filling stations.
The communication ministry has plans to increase the fares of the CNG three-wheelers and taxicabs 'proportionately', but such transport operators are likely to defy the notion of proportionality judging by their past conduct. To our knowledge, they have already started charging abnormal fares following announcement of new gas rates.
The Special Assistant to the Chief Adviser on Energy M Tamim rules out any increased fares for CNG-run buses and trucks as 'these have already been charging much higher fares compared to their fuel costs for long'. Actually, the CNG-powered buses had been charging either equal or more than the diesel operated buses, even though the latter's fuel cost is four times that of the former. The communication ministry's job is cut out here to enforce rationality in the fare structures.
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