APD | CNG consumption surged by 10 pct in Iran after gasoline price rationing

By APD Writer Muhammad Sohail

Consumption of the Compressed Natural Gas (CNG) in Iran has increased by 10 percent since the implementation of the gasoline price-rationing program launched, Head of the CNG promotion program at National Iranian Oil Product Distribution Company (NIOPDC) said.

“CNG consumption in the country has risen by two million cubic meters per day since the (implementation of) the gasoline rationing plan,” local media reported while quoting the official on Sunday.

According to the official statistics, the average consumption of CNG in October 019, before the gasoline rationing, was at 19.3 million cubic meters per day (mcm/d), which has now jumped to about 22 mcm/d, indicating a two-mcm/d growth.

The official said that there are currently 2,400 CNG stations across the country with more than 2,478 installed compressors.

On November 13, the Iranian government started regulating the subsidized gasoline and increased fuel prices for what they say to use the revenue for 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 Iranian rials (nearly 35 cents at the official rate of 42,000 rials per dollar) from 10,000 Iranian rials and the monthly ration for each passenger car was set at 60 liters. Additional purchases would cost 30,000 rials per liter.

World Energy Outlook 2018 report said Iran holds the first place among the world’s countries in terms of the number of subsidies which is allocated to energy consumption adding that that 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.

(ASIA PACIFIC DAILY)