Iranians burnt as much as 21 billion liters of gasoline between March 22 and Nov. 22, up 14% or 2.6 billion liters compared with the corresponding period of last year, the head of the National Iranian Oil Products Distribution Company said.
“Daily demand averaged just above 85 million liters in the 245-day period, indicating a 22% rise compared to a year ago when Covid-19 inter-city traffic restrictions were still in place,” Keramat Veiskarami was also quoted as saying by ISNA.
Gasoline consumption reached a peak between June and July, such that on some days, demand was as high as 105 million liters, he added.
According to the official, gasoline sold in big cities is compliant with Euro-4 emission standards.
“A study conducted by the Iranian National Standards Organization from August to October on gasoline quality indicates that the fuel contains acceptable levels of sulfur and other chemicals,” he said.
“Not only have sulfur levels declined compared to summer, aromatic compounds, benzene, octane and olefin are also at acceptable levels.”
As part of the study, samples of gasoline compliant with Euro-4 emission standards were collected randomly from 500 gas stations and the results revealed that sulfur and aromatic hydrocarbon levels were admissible.
NIOPDC, a subsidiary of the National Iranian Oil Company, produces close to 115 million liters of gasoline per day, of which 52% are produced by the Persian Gulf Star Refinery and the rest by Shazand Refinery in Arak, Markazi Province, Tabriz Refinery in East Azarbaijan, Abadan Refinery in Khuzestan Province and Bandar Abbas Refinery in Hormozgan Province.
Iran has improved the distribution of cleaner gasoline in recent years, but wide-scale supplies of low-quality diesel and slack environmental rules are delaying efforts to effectively curb air pollution.
The official noted that supply of gasoline, diesel and other oil derivatives across the country is continuing normally and there are no worries in this regard.
“All refineries are up and running, and petroleum byproducts, including mazut, are transferred to fuel depots in major cities as usual,” the official added.
Veiskarami reassured that gasoline inventories are full, as the fuel is transferred from refineries both via pipelines and tanker trucks.
Emission standards define the acceptable limits for exhaust fumes of vehicles. European emission standards are outlined in a series of European Union directives on the progressive introduction of increasingly stringent standards.
Pre-Pandemic Levels
As restrictions imposed to help fight Covid-19 have been removed, fuel demand is returning to levels it reached before the coronavirus outbreak.
NIOPDC has predicted gasoline consumption to exceed 130 ml/d by 2024, in which case 15 million liters of fuel have to be imported because the company’s maximum production level is 115 ml/d.
It is reported that 13 million liters of gasoline in the capital city and 17 million liters in the province are consumed daily. In fact, residents of Tehran Province consume more gas than Poland, with its 40 million population and Turkey’s 80 million.
This is while per capita vehicle ownership in Iran is 3-3.5 per 10 people while in Turkey it is more than 5 per 10 persons.
The government pays huge subsidies – close to $50 million per day – for gasoline.
Energy experts, including Veiskarami, believes that it is high time the government starts putting the brakes on the production of fuel-intensive cars.
Replacing gasoline with compressed natural gas is among other proposals to curb rising consumption. Hybrids are also appearing on Tehran’s roads, albeit at a very slow pace.
He added that officials have often warned about the strange consumption patterns, but because fuel is no longer imported, they care little about how much fuel is used.
Asked about diesel output, he said 100 million liters of the fuel are produced daily, of which under 40 million liters comply with Euro-4 emission standards.
Diesel-powered cars are banned in Iran and the fuel is primarily used in heavy-duty vehicles, power plants and industries.
Global Average
Per capita gasoline consumption in Iran, with a population of 83 million, is above the global average.
According to data from the Oil Ministry and NIOC, consumption of gasoline in Iran has surpassed 85 million liters, i.e., 10 times more than Turkey with almost the same population.
Drawing a parallel between Iran and more populated countries like China, the NIOC data revealed that close to 450 million liters of gasoline are burnt in China daily and this is while its population is over 1.5 billion, meaning gasoline consumption in Iran is threefold higher than that of China.
NIOPDC started to export the fuel to international markets, namely Iraq, Afghanistan, the Persian Gulf littoral states and the semi-autonomous region of Iraqi Kurdistan in 2019.
Nonetheless, experts have warned that if the consumption rate continues to grow at the same pace, the company will have to stop exporting gasoline and import it to meet the ever-growing demand in less than two years.
Each liter of gasoline is sold at 7.5 cents in Iran whereas the same amount of fuel can generate 55 cents whenexported.
