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CNG Station-Owners Call for Higher Commission Fee

CNG Station-Owners Call for Higher Commission FeeCNG Station-Owners Call for Higher Commission Fee

With eight compressed natural gas (CNG) stations having gone into operation in the first 51 days of the current Iranian calendar year (began March 21), the number of CNG stations across the country has reached 2270, Tasnim news agency reported.

According to the plans, a total of 100 CNG stations must go on stream in the current year, of which eight has been fulfilled so far.

Iran's CNG Association has proposed a 25 percent increase in the CNG station-owners commission fee, Ardeshir Dadras head of the association said Tuesday. The price increase is currently being assessed by the oil ministry, Dadras said, expressing hope that the new price will be effective as soon as the government's economic council approves it in June.

The association has also called for a further 15 percent decrease in CNG prices to lower the price of each kilo of CNG to 5000 rials (14 cents) with the aim to encourage consumers to use less gasoline. The slight discrepancy in gasoline and CNG prices is the primary cause of rising gasoline consumption, and a disincentive to CNG consumers.

CNG prices currently stand at 6,000 rials (17 cents) per kilogram, while the average price of gasoline is 10,000 rials ($0.36) per liter.

Iran is one of the leading countries promoting CNG with 2,249 stations. More than $2.4 billion has been invested to expand CNG use, and close to 22,000 individuals are employed in this industry.

Financialtribune.com