Economy, Auto

Iranian NGO Offers CNG Tank Replacement Loan

Close to 300,000 loans of 10 million rials ($240)  will be available to help replace ageing CNG tanks.Close to 300,000 loans of 10 million rials ($240)  will be available to help replace ageing CNG tanks.

Alternative Fuels Association, a local NGO, has introduced a CNG tank replacement scheme and will give loans to people who own CNG hybrid vehicles more than 10 years old.

The NGO secretary, Mohsen Mashayekhi, says, “In collaboration with the Industries Ministry and Post Bank of Iran, 300,000 loans of 10 million rials ($240) each will be offered through the scheme,” local automotive website Asre Khodro reported.

The loans (initially available in Tehran, Isfahan, Markazi and Qazvin) will be offered at 18% and 24-36 monthly installments. Applicants can register with online portal The money will be available in January.

A new CNG tank costs 9 to 11 million rials in the market.

According to Mashayekhi, some 6 million CNG-powered vehicles ply the roads, the majority of which are almost a decade old. The tanks show signs of wear and tear over time and can be dangerous.

Furthermore, thousands of drivers have installed substandard tanks on their cars. Mashayekhi says, “One third of vehicles using CNG have been refitted by uncertified mechanics.”

Reports in the local press say CNG tank explosions have become more frequent in recent years with several videos of such incidents going viral.

CNG hybrid vehicles have a 15% share of the auto market. According to statistics released by the Ministry of Industries, in the eight months 38,052 CNG hybrids were produced indicating a 5% year-on-year decline.

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