Fuel sales fall 34% after record price hike

Light and moderate vehicles rush to use CNG

August 12, 2022, 12:10 p.m.

Last modification: August 12, 2022, 3:58 PM

Infographic: TBS

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Infographic: TBS

Liquid fuel sales in the country have seen a massive drop following the latest record fuel price hike of a maximum of 51%.

Liquid fuel sales fell to a maximum of 34.10% through August 10 from the first day of this month.

Following the August 5 fuel price hike, consumers are now switching from liquid fuel to compressed natural gas (CNG) and automotive gas.

CNG and auto service stations are now facing increasing pressure from vehicles at stations as more and more choose to switch to CNG from diesel and octane.

It now costs almost one and a half times as much to use diesel, octane and gasoline to travel the same distance as a vehicle using CNG.

The use of diesel, which is the most consumed petroleum product in the country, used by buses, trucks loaded with goods, trains and waterways, decreased by 16.02%.

Talking to owners of CNG gas pumps and filling stations, we learned that they are seeing a drop in demand for diesel, gasoline and octane as people switch to CNG.

Kazi Raj Kader, director of All in One Ltd, which owns a CNG filling station in Tejgaon and a petrol pump in Mohakhali, said he noticed a decline of around 20-30% in diesel sales as he was right in front of the Mohakhali bus. terminal from which inter-district buses run.

“We are seeing huge pressure at our CNG filling stations since the fuel price adjustment. Cars and microbuses that used to run on diesel are now using CNG,” he said.

According to data from the Bangladesh Petroleum Corporation, on the first day of August, total diesel sales were 18,837 tons, which fell to 15,819 tons on August 10.

Sales of fuel oil, which is used to generate electricity, saw a record drop of 34.10% while gasoline, used by motorbikes and cars, has seen sales drop 26.49% since rising prices.

As of August 1, fuel oil sales stood at 4,109 tons, before dropping to 2,708 tons, while gasoline sales fell from 1,846 tons to 1,357 tons.

Octane sales were also down 10.79% during the period.

Farhan Noor, general secretary of the Bangladesh CNG Filling Station and Conversion Workshop Owners Association, told The Business Standard that bi-fuel vehicles digested 60% of gas as fuel before oil prices rose.

“But now they use about 75% gas to run the vehicles. For the rest of the fuel, they depend on liquid fuel because gas is not available in all corners of the country,” he said. .

Numan Ahmed Taffader, Managing Director (Marketing) of Padma Oil Company Limited, told The Business Standard that demand for fuel declined soon after the price adjustment order.

“However, consumption is now almost back to the previous level with a slight drop,” he said.

Eleanor C. William