LPG Autogas Station & Conversion Workshop Owners Association seeks 10-year tax holiday 

The Bangladesh LPG Autogas Station & Conversion Workshop Owners Association has demanded a 10-year tax holiday to help the sector flourish and ensure the survival of businesses. 

They have also called for the withdrawal of the currently imposed 7.5 per cent value-added tax (VAT) on autogas at the consumer level to encourage the growing consumption of this clean fuel. 

Association President Mohammad Serajul Mawla presented these demands during a pre-budget meeting with National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan at the NBR office in Agargaon, Dhaka. 

The businessmen also urged a tax-free import facility for raw materials required to install autogas stations and conversion workshops, stating that it could significantly reduce import costs of finished products. 

The association’s General Secretary, Md Hasin Parvez, along with its executive and senior members, participated in the pre-budget meeting. 

Currently, the Bangladesh Energy Regulatory Commission (BERC) sets LPG prices for private operators within the first week of every month. 

Although 58 companies have received licenses to operate, only 27 are actively doing business.

Around 20 operators import approximately 1.10 million tonnes of LPG from the international market—accounting for about 98 per cent of the country's total LPG demand—while seven serve as satellite operators. 

Bangladesh has about 20 LPG terminals nationwide, with a total storage capacity of around 100,000 tonnes. 

Approximately 35 million LPG cylinders are in circulation in the country’s LPG market.

The LPG freight business involves around 200 road tankers, 5,000 trucks, and 21 cargo vessels. 

Azizjst@yahoo.com