Energy
0

Iran: CNG Use in Vehicles Helps Cut Fuel Costs

Now that the difference has increased to 22 cents, motorists are expected to apply for a low-interest loan that is being offered in collaboration with Bank Parsian and Post Bank of Iran
Iran: CNG Use in Vehicles Helps Cut Fuel Costs
Iran: CNG Use in Vehicles Helps Cut Fuel Costs

Converting gasoline-powered vehicles, especially vans, to compressed natural gas hybrids can help reduce fuel costs for motorists by 100%, deputy managing director of the state-run National Iranian Oil Products Distribution Company said.
“Vans need at least 1,000 liters of gasoline per month and filling up with the fuel will cost 30 million rials ($250). Nonetheless, if they use CNG (1000 cubic meters per month), up to $208 per month can be saved,” Mohammad Rezaee was quoted as saying by IRNA.
Each cubic meter of CNG is sold for 5,000 rials (4 cents), while a liter of subsidized gasoline costs 15,000 rials (13 cents) and non-subsidized fuel 30,000 rials (26 cents). 
As per a new directive issued by the NIOPDC on Nov. 15 to sell gasoline at two rates, non-hybrid vans are entitled to get 200 liters of subsidized fuel per month and the rest costs 30,000 rials a liter.

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com