CNG consumption rises 11% after third-tier gasoline price change
Iran’s oil ministry says average nationwide CNG use increased by about 2 million cubic meters per day in the first week after the rate was raised to 100,000 rials.
Iranian officials reported an 11% increase in average daily CNG consumption during the first week after the third-tier gasoline rate doubled to 100,000 rials. The government kept the two subsidized gasoline quotas unchanged and is prioritizing free CNG conversions for high-mileage app-based vehicles.
TEHRAN — Average CNG consumption in Iran rose by approximately 2 million cubic meters per day, or 11%, during the first week after the third-tier gasoline rate was increased to 100,000 rials, according to Mohammad-Sadegh Azimifar, deputy oil minister and managing director of the National Iranian Oil Products Refining and Distribution Company.
The figure was reported as an increase compared with the first half of Shahrivar and the month of Mordad. Azimifar said the rise in CNG use, alongside lower gasoline consumption, indicated a positive effect from the new rate in addressing gasoline imbalance and reducing reliance on imports.
He added that the company is prioritizing a program to convert high-mileage vehicles used by app-based passenger and freight services to CNG at no cost, and said the initiative is under way.
The government raised the price of gasoline dispensed through fuel-station cards from 50,000 to 100,000 rials while keeping the first- and second-tier subsidized quotas unchanged at 15,000 and 30,000 rials. The measure was described as the second stage of a gradual fuel-distribution reform.