CNG 80% more cost-efficient compared to gasoline
TEHRAN – The acting operator of the National Iranian Oil Refining and Distribution Company (NIORDC)’s CNG projects said using Compressed Natural Gas (CNG) as fuel in the public transportation fleet is going to save over 80 percent of the fuel costs compared to gasoline.
According to Mohammad-Hossein Bagheri, each cubic meter of CNG is equivalent to one liter of gasoline in the fuel basket of cars, and since the consumption of public transport vehicles is high, using CNG would be much more cost-efficient.
CNG prices are much lower than gasoline in Iran and while one cubic meter of CNG is about 4,530 rials, one liter of gasoline is 15,000 rials, which means gasoline is over three times more expensive than gas, Baqeri said.
Iranian Oil Ministry considers CNG as the national fuel, therefore, the ministry has it on the agenda to increase the share of this fuel in the country’s energy basket.
Back in December 2019, NIORDC and Iran’s state-owned Iran Khodro Company (IKCO) signed a memorandum of understanding (MOU) to add new dual-fuel vehicles to the country’s public transportation fleet.
The number of dual-fuel cars in Iran has increased to 3,908,604 vehicles following the implementation of the mentioned program to turn public vehicles into dual-fuel cars, according to the data released by National Iranian Oil Products Distribution Company (NIOPDC).
The MOU was aimed to add 1.46 million dual-fuel vehicles to the public transportation fleet, of which so far 25,000 cars have been converted.
Back in November 2019, Iran also started a program for the rationing of subsidized gasoline and increased fuel prices to reduce the energy subsidies and to use the revenue for supporting underprivileged families.
The implementation of the rationing plan has led to the reduction of gasoline consumption while promoting CNG consumption in the country.
Iran’s CNG consumption stood at 19 mcm per day before the implementation of the fuel rationing scheme, however, in mid-September, an official with NIORDC announced that the daily consumption of CNG has reached 25 million cubic meters in Iran.
There are currently 2,495 CNG stations across Iran that supply 22 percent of the country’s fuel basket.