Prospect and Challenges in Bangladesh Autogas Market

Abstract

Transportation system which is the basement of the industrial and socioeconomic development of any country and mainly depends on fossil fuel. In Bangladesh the reserve of fossil fuel is limited and will be exhausted within next 10–12 years if the existing consumption rate continues. The demand of petroleum products increasing gradually in Bangladesh where 70 % imported by BPC. Among the imported products, 64.27 % used by transportation sector which is costly and harmful for environment. Considering the environment and economic issues government stated CNG (Compressed Natural Gas) as transporting fuel after 2000s but the reserve of NG gas is decline mode. Bangladesh government thinking about new source of energy for transport sector which is sustainable, environmentally friendly and economically save. Autogas is the best option for vehicles fuel in Bangladesh which consumption increase 400% last five years. The objective of the study is to find out the Autogas market development challenges in Bangladesh and recommend to reduce the challenges. Secure supply chain, inadequate infrastructure, insufficient investment, lack of government monitoring and consumer awareness are the main challenges for develop Autogas market in Bangladesh. Bangladesh government as well as private owner of LPG industry should come forward to reduce the challenges for secure energy sector for sustainable development.