CNG Filling Stations Are Economically Unfeasible

CNG Filling Stations Are Economically Unfeasible

The unprecedented rise in currency rates and low margins of fueling stations are pushing the CNG retail sector to the brink of insolvency, a member of the board of directors at Iran’s CNG Association said.

“Although costs associated with developing and running a CNG station has increased ten-fold in the past five years, the profit margin for retailers remains as low as 3,000 rials (1 cent) for one cubic meter and has not increased since 2018,” Mohsen Johari was quoted as saying by ILNA.

The cost of CNG business is increasing not the profit. “This is a disincentive to CNG suppliers” and apparently pushing gas station owners to the wall, Johari said.

“Unless station owners are offered some relief in utility bills and taxes, most may have to declare insolvency sooner or later.”


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