Rationing scheme reduces gasoline consumption in Iran

February 7, 2020 - 14:3

TEHRAN – Head of the CNG promotion program at National Iranian Oil Product Distribution Company (NIOPDC) says every day 4.5 million cubic meters of compressed natural gas (CNG) is consumed in the country instead of gasoline since the implementation of the fuel consumption management scheme, IRIB reported.

According to Hassan Qolipour, in the past Iranian calendar month of Dey (December 22, 2019-January 20, 2020), 24.5 mcm of CNG was distributed to the country’s gas stations to register a 3.5-mcm rise compared to the preceding month.

Underlining the fact that the country’s average daily CNG consumption stood at nearly 19 mcm before the rationing scheme, Qolipour said after the implementation of the mentioned scheme CNG consumption has increased significantly.

A total of 734.6 mcm of CNG was consumed in the country during the mentioned month, the official said. 

Earlier this month, the National Iranian Oil Refining and Distribution Company (NIORDC) announced that CNG consumption in Iran has increased by 31 percent since the implementation of the gasoline rationing scheme.

In mid-November 2019, the Iranian government started rationing of subsidized gasoline and increased fuel prices as it plans to use the revenue for supporting underprivileged families.

Later that month, the head of NIOPDC’s CNG promotion program announced that CNG consumption in the country had increased by 10 percent only two weeks after the beginning of the program.

According to Hassan Gholipour, there are currently 2,400 CNG stations across Iran and more than 2,478 compressors are installed in the country’s CNG stations.

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.

EF/MA

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