Gasoline Consumption Rises

Gasoline Consumption Rises Gasoline Consumption Rises

More than 2.75 billion liters of gasoline was consumed in the first five months of the Iranian calendar year (beginning March 21), the managing director of Tehran's National Iranian Oil Refining and Distribution Company (NIORDC) said.

During this period 6.9 million liters of kerosene, 1.1 billion liters of diesel fuel, 40.8 million liters of mazut, and 312 million cubic meters (mcm) of compressed natural gas (CNG) were consumed in Tehran.

There are 265 stations providing gasoline and CNG in Tehran. On average in the first five months, 13 million liters of gasoline was consumed per day, while in Shahrivar (August 23 onward) the figure had reached 14.5 million showing a 1.5 million increase, Morteza Abedini said at a press conference Monday, Shana reported.

Noting that 97 percent of the gasoline is produced in Iran, he stressed: "The gasoline consumed in Tehran is clean and the diesel fuel complies with Euro-4 standards."

"The increased gasoline consumption can be attributed to two major factors: the end-of-summer trips, and the reopening of schools."

He acknowledged that the night before the second phase of the targeted subsidy plan the figure had reached 20 million, and also 19 million on Fitr holiday, Shana reported.

Under a five-year plan started in December 2010, and promoted as an “economic revolution” by former president Mahmoud Ahmadinejad, Iran began slashing three-decades-old subsidies on sensitive energy and food items, replacing them with disputable cash payments to the poorest of the population.

The Economic Reform Plan, encompassing subsidies on basic goods and services, is probably one of the most important undertakings in Iran's recent economic history.


However, gasoline consumption had declined during the past years not only because of the price hike following the subsidy plan, but also due to the considerable rise in CNG consumption.

Currently 2.4 mcm of CNG is distributed per day in Tehran, Abedini said, adding that during the past five months 312 mcm of CNG was consumed in Tehran. "The figure indicates a 16 mcm increase compared with the same period last year."

"There are 176 stations to provide CNG in Tehran. The plan to open a further 25 stations which begun in the beginning of summer is now completed."

Meanwhile, Abedini said 15 CNG stations became inoperative; this amounts to 8.6 percent of total CNG stations. Of these stations, seven were rendered inactive due to technical problems, six for owing debts, and two because of legal complications.

Following agreements between the oil ministry and Tehran's Municipality, construction of the new stations has been settled, Abedini said, noting that work would be carried out by the private sector.