CNG consumption up 10% following gasoline rationing

November 24, 2019 - 16:20

TEHRAN – Head of the CNG promotion program at National Iranian Oil Product Distribution Company (NIOPDC) says consumption of compressed natural gas (CNG) in the country has increased by 10 percent since the implementation of the gasoline rationing scheme.

“CNG consumption in the country has risen by two million cubic meters per day since the [implementation of] the gasoline rationing plan,” IRNA quoted Hassan Qolipour as saying on Saturday.

Speaking in a press conference, Gholipour put the average consumption of CNG in the past month, before the gasoline rationing, at 19.3 million cubic meters per day (mcm/d), and said the figure has now risen to about 22 mcm/d, indicating a two-mcm/d growth. 

He further noted that there are currently 2,400 CNG stations across the country, adding that more than 2,478 compressors are installed in the country’s CNG stations.

On November 13, the Iranian government started rationing of subsidized gasoline and increased fuel prices as it plans to use the revenue for supporting underprivileged families.

Mohammad Baqer Nobakht, head of the Planning and Budget Organization, said on November 12 that proceeds from the price hikes would be used to fund additional subsidies for 18 million underprivileged families, or about 60 million people.

According to a statement published by National Iranian Oil Products Distribution Company, the price for a liter of regular gasoline was increased to 15,000 rials (nearly 35 cents at the official rate of 42,000 rials per dollar) from 10,000 rials and the monthly ration for each passenger car was set at 60 liters. Additional purchases would cost 30,000 rials per liter.

Due to heavy subsidies and devaluation of its currency, Iran has one of the cheapest fuel prices in the world and the country has been fighting rampant fuel smuggling to neighboring countries.

In one of its latest reports dubbed “World Energy Outlook 2018”, the International Energy Agency (IEA) put Iran on top of the list of the world’s countries for energy subsidies. That means Iran holds the first place among the world’s countries in terms of the amount of subsidies which is allocated to energy consumption.


Leave a Comment

6 + 11 =