So long as profit margin for retailers in the CNG sector remains low, the privately-owned industry is unlikely to grow, head of the Iran CNG Association said.
“The cost of managing and developing a CNG station has increased ten-fold in five years. The profit margin remains as low as 3,000 rials (1.4 cent) for one cubic meter and has not increased since 2018,” Ardeshir Dadras was quoted as saying by Mehr News Agency.
Although the government is encouraging car owners to retrofit their vehicles to CNG hybrid, low margins for filling stations are pushing the CNG retail sector over the edge, Dadras said.
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