Introduction: The Growing Pains of a Green Transition
Bangladesh is currently caught in a dangerous paradox. As the nation aggressively pivots from dwindling natural gas reserves toward Liquefied Petroleum Gas (LPG) Autogas, a sector intended to be the "green" vanguard of the transport industry is instead becoming a source of public dread. While the expansion has been explosive—with over 1,000 stations now operational—a shadow of tragic accidents in Rangpur, Mymensingh, and Cox’s Bazar has exposed a systemic rot. The irony is as sharp as it is lethal: the very technology meant to modernize the energy landscape is currently a public safety hazard, not because of the gas itself, but because of a paralyzing collision between rigid, outdated policy and a bureaucratic machinery that has ground to a halt.
The 90% Ghost Economy—Why Most Stations Lack Final Licenses
The scale of the regulatory crisis is staggering. Of the approximately 1,000 to 1,100 Autogas stations currently fueling the nation’s vehicles, a stunning 90% are operating without a final license. This has birthed a "ghost economy" where the majority of the sector's infrastructure is technically illegal, yet functionally indispensable.
Crucially, these entrepreneurs are not renegades building in the dark. According to industry data, 100% of these station owners possess approved designs and preliminary permissions. They have followed the state’s own blueprints to the letter. However, they are being denied the final operational key. The 2016 LPG Policy has created a landscape where the requirements for a final license are functionally impossible to meet, leaving hundreds of owners in a state of permanent "licensing limbo."
"Operating without a license is illegal, but the necessity of the service has created a situation where stations continue to run. We have repeatedly informed the relevant departments that the conditions set in the policy are simply unattainable for the majority of entrepreneurs."
The "Impossible" 25-Foot Rule and the 2022 Leadership Shift
The primary technical blockade preventing these stations from achieving legal status is a set of safety distance requirements that ignore the architectural realities of Bangladesh. The current regulations mandate a 120-feet entrance for stations and a 25-feet safety clearance on all sides of the storage tanks. Engineer Sirajul Maula, President of the Bangladesh LPG Autogas Station & Conversion Workshop Owners Association, notes the absurdity of the situation: "If these things were followed properly, I don't think there would be a single autogas station in Bangladesh."
The root cause of this paralysis is a significant policy shift that occurred in 2022. Before this period, the Explosives Department was led by technical experts who applied a degree of "practical flexibility," recognizing that a 25-feet buffer is a geographic impossibility in a dense urban center like Dhaka. However, since 2022, leadership has shifted to non-technical ministry personnel. This transition from technical expertise to rigid administrative obstructionism has seen enforcement turn strictly literal. By ignoring the nuances of engineering for the sake of bureaucratic adherence, the department has effectively stranded 800 to 900 stations that were built under the previous, more realistic understanding of the law.
The 15-License Gauntlet: A Study in Bureaucratic Gridlock
An entrepreneur seeking to legitimize an Autogas station must navigate a claustrophobic maze of approximately 15 different No Objection Certificates (NOCs) and licenses. This fragmented regulatory landscape is less of a safety check and more of a bureaucratic endurance test. The process begins by securing a trade license and TIN/BIN registrations before shuttling through the Deputy Commissioner’s office, which requires sub-clearances from the AC Land, Traffic Police, and the Upazila Executive Officer.
The lack of coordination creates a series of impossible "Catch-22" scenarios. For instance, the Department of Environment—which labels Autogas as a "green" sector—often refuses to grant final clearance until the owner provides a lease agreement from the Roads and Highways Department. Yet, securing that lease is a legendary slog that can stall for over five years. As these departments operate in silos, the entrepreneur is left caught between competing demands, effectively barred from compliance by the very system designed to enforce it.
The Human Element: Training Over Technology
While technical malfunctions are often blamed for the blasts in Rangpur and Mymensingh, a deeper analysis reveals a failure of human capital. Investigations show that these tragedies were largely the result of maintenance performed by untrained personnel. The sector currently relies on roughly 4,500 critical workers—3,000 station operators and 1,500 road tanker drivers—who are handling highly sensitive pressurized gas with almost no formal, institutionalized training.
The industry is now calling for a mandatory, government-backed certification program. The technology itself is sound, but the workforce is uncertified. For a sector this volatile, the current "learn-on-the-job" approach is a recipe for further disaster.
"Three things are critical for safety: workers must be trained, they must be certified by an institute, and they must be authorized by an authority. In developed countries, these are strictly followed. Without these three pillars, accidents will continue." — Engineer Sirajul Maula.
The Supply Chain Fragility and the "Cross-Filling" Dilemma
Beyond the licensing crisis, the sector faces a "Franchisee Dilemma" that threatens its operational integrity. Most stations are legally tied to specific importers, yet many of these importers fail to provide a consistent supply of gas. This forced dependency creates a supply chain fracture where station owners, desperate to keep their businesses alive, are forced into "illegal" sourcing from other providers.
This normalization of illegality extends to "cross-filling"—the practice of refilling domestic cooking cylinders at Autogas stations. While strictly prohibited by law, the practice was reportedly encouraged by local administrations during the catastrophic floods in Feni and Noakhali when standard supply chains collapsed. While humanitarian in the short term, this has created a dangerous precedent. Technical experts warn that Autogas stations are not equipped for domestic bottling, yet as long as 90% of the industry remains outside the formal legal framework, such risky practices are likely to persist.
Conclusion: A Call for a "Single Umbrella" Solution
Bangladesh’s Autogas dream is at a crossroads. The current "90% unlicensed" status is not just a regulatory failure; it is a ticking time bomb of "stranded assets" and safety risks. If the government intends to phase out CNG in favor of LPG over the next decade, it cannot do so with a policy framework that treats 900 stations as outlaws.
The solution is a "Single Umbrella" or "One-Stop" regulatory framework, ideally under the coordination of the Bangladesh Energy Regulatory Commission (BERC) or the Ministry of Power, Energy and Mineral Resources. By digitizing the application process and synchronizing the 15 required clearances, the state can replace the current gauntlet with a streamlined, transparent system.
The ultimate question is whether the government can modernize its red tape fast enough to match its energy ambitions. In the world of energy commerce, safety and compliance are not optional luxuries—they are the non-negotiable price of survival. Without a radical shift toward a single-window authority, the Autogas boom may very well end in a bust.
Rerort based on EP Focus - 55 https://www.youtube.com/watch?v=72qwzYcl5Dg
