DHAKA, April 2 (Xinhuanet) -- The Bangladeshi government plans to allow tax-free import of Compressed Natural Gas (CNG) driven engines and vehicles to ensure proper utilization of environment-friendly natural gas from domestic supply.

    According to the daily Independent on Saturday, a proposal raised by the Power, Energy and Mineral Ministry in this regard is now under active consideration of the Finance Ministry.

    Sources from the Energy Ministry said tax-free import of the CNG-driven engines and vehicles if allowed will save huge foreign currency, for it will alleviate the country's dependence on imported petroleum with soaring prices.

    The tax exemption of CNG-run transport facilities can also help relieve the financial loss brought by diesel imports and check smuggling of diesel.

    The government imports diesel worth some 450 million US dollars annually, with over half of it is used for plying vehicles. The government, moreover, spends some 1.18 billion dollars every year for subsidizing diesel supply as it imports per liter of diesel at a cost of 28 taka (about 0.46 dollar) but sells the same at 23 taka (0.38 dollar) in domestic market.

    Local black marketers are sending huge amount of imported diesel into Indian as the market price of diesel is higher there with 34 taka (0.56 dollar) per liter.

    In a letter to the Finance Ministry, the Energy Ministry pointed out many countries in the world are now manufacturing CNG engines with gearbox supports, which are compatible with diesel engines.

    If the import of CNG engines are exempted from duty, bus and truck owners of Bangladesh will get an opportunity to convert their vehicles from diesel engines into CNG-run ones, as the domestic CNG fuel costs them less.

    People in general will benefit from the policy, as the transport fairs will decrease and the air pollution brought by traffic will be reduced, added the letter. Enditem