The National Iranian Oil Products Distribution Company has stopped supplying gasoline compliant with Euro-4 emission standards to gas pumps in Ahvaz, the capital of southwestern Khuzestan Province, since June, the head of the provincial Gasoline Station Owners Association said.
“The octane rating of the fuel sold in the city is less than 85 that has exacerbated the air pollution menace in the city,” Ebrahim Albaji was also quoted as saying by ISNA.
The octane number in the Iranian Euro-4 grade gasoline is around 92, he added, noting that as per the Cabinet directive issued in 2010, NIOPDC, a subsidiary of the National Iranian Oil Company, is obliged to sell Euro-4 gasoline in major cities, but it has halted distribution of the high-octane fuel in Ahvaz since four months ago.
“Using fuel with lower octane ratings can reduce the performance of car engine and worsen air pollution,” he said.
According to the official, motorists in the region are just provided with regular gasoline (the lowest octane fuel) and they have access neither to Euro-4 quality gasoline nor to premium gasoline, marketed as "super".
Ahvaz has long been suffering from dust storms, but there are other critical factors behind air pollution in the province, namely gas flaring and low quality gasoline.
Iran's production of 3 million barrels of crude oil a day results in the flaring of around 39 million cubic meters of gas across the country and Ahvaz is reeling from air pollution caused by gas flaring.
Albaji said close to 5 million liter of gasoline are burnt in Ahvaz per day and not distributing fuel with high octane ratings is a recipe for disaster.
Oddly enough, a large proportion of Euro-4 gasoline sold in other cities are produced in southern oil-rich regions, but southern areas are deprived of the quality fuel.
Out-Of-Service Nozzles
According to Albaji, there are 2,126 fuel nozzles in Khuzestan Province, of which 35% or 800 are out-of-service.
“The number of dilapidated fuel dispenser nozzles, which cannot be repaired, is increasing because of which long queues of cars are formed at pumps,” he said, adding that most gas stations are operating at 70% of their capacity.
Gas stations’ spare parts were imported from the US and Germany, and could be easily found at reasonable prices. Nonetheless, “now they can only be found at prohibitive prices and with difficulty”.
“Close to 8,000 old nozzles in Khuzestan are in need of parts that are not available in the domestic market,” he said.
Homayoun Salehi, the head of Gasoline Station Owners Association, said the situation is the same in other regions, as many pumps are either nearing obsolescence or have gone out of use since 2019 because the much-needed parts cannot be imported due to the US sanctions.
Referring to exorbitant costs (if the part can be found in the market), he noted that a pump plunger cost $160 in 2019, but the same thing is currently sold at $2,000.
Iran is not suffering from a lack of engineers who can design and produce nozzle parts; the problem is that the country does not have access to advanced knowhow about how to combine different elements and metals to produce superior alloys with anti-corrosion properties.
Salehi noted that the electronic fuel card system has been in use for more than 12 years, but the system's hardware has not been updated, which can expose the card system to cyberattacks.
“There are about 4,500 filling stations across the country and upgrading all the nozzles demands a huge investment,” he said.
Current Expenses
At least 60% of filling stations cannot meet their current expenses and are on the verge of insolvency due to high inflation, Salehi said.
“Gas station commissions are not proportional to the inflation rates and unless remunerations are boosted, many stations will go bankrupt due to their growing costs.”
The official noted that gas-station owners' commission has not increased in years, while the commission for CNG sales has been raised by the government, he added.
Gas pumps should be overhauled at least once a year, but financial constraints do not permit owners to fix out-of-service fuel nozzles, or upgrade their tank monitoring systems, automatic tank gauges and flow meters.
According to Afshin Mahdavi, deputy manager for planning at the National Iranian Oil Production and Distribution Company, average daily consumption last year stood at 87 million liters, but it has now exceeded 100 million liters and it is expected to grow further.
