Single Measurement Unit at CNG Stations

Single Measurement Unit at CNG Stations Single Measurement Unit at CNG Stations

As of Friday, all compressed natural gas (CNG) stations were required to change CNG supply measurement units from cubic meter to kilogram, an initiative which prompted confusion among consumers over pricing ambiguities, Shana news agency reported.

The plan, aimed at unifying CNG measurements, sparked uncertainty over pricing as it's changed nominally in proportion to the new measurement unit, Amir Vakilzadeh, the National Iranian Oil Refining and Distribution Company's director for CNG station projects said.

CNG prices currently stand at 4,500 and 6,000 rials (13, and 17cents) per cubic meter and kilogram, respectively. To implement the plan, all stations were ordered to change piston meters and pump displays of all CNG pumps as to show kilogram only.

The commodity is supplied on a volume basis that is kilogram in more than 75 percent of CNG stations, meaning that 25 percent of the stations across the country should employ the new measurement unit henceforward. Every kilogram of CNG equals 1.44 cubic meters.  

CNG consumption currently stands at 18.5 million cubic meters per day. CNG accounts for 23 percent of Iran's fuel basket, but the number is projected to increase to 35 percent before the end of the Sixth Five-Year Economic Development Plan (2016-2021). Iran is one of the leading countries in promoting CNG with 2,249 stations. More than $2.4 billion has been invested for promotion of CNG, and close to 22,000 individuals are employed in this industry.