The protest began around 10am, causing severe traffic congestion on the adjacent road.
The demonstrators said they were demanding fixed routes for CNG-run autorickshaws operating in the capital.
Many of the protesters were seen wearing shrouds (symbolic burial cloths).
And while they allowed ambulances and airport-bound vehicles to pass, all other traffic was stopped.
Protesters announced they would continue the demonstration until their demands were met.
Mehedi Hasan, investigation officer of Banani police station, said that CNG drivers had blocked the Dhaka-Mymensingh road in Banani, halting traffic flow.
Police are trying to bring the situation under control, he added.
