Tehran Province has a total of 284 gas stations with 150 in the capital city.
Tehran Province has a total of 284 gas stations with 150 in the capital city.

NIORDC: Private Sector Allowed to Import Gasoline

Tehran has sought to bolster the private sector's role in fuel supply by privatizing dozens of petrol stations nationwide

NIORDC: Private Sector Allowed to Import Gasoline

Private Iranian companies are allowed by law to import gasoline, a top energy official said on Tuesday, indicating that the government is in the process of gradually reducing its monopoly on fuel production and distribution.
"Regarding gasoline imports, the Oil Ministry is primarily concerned with the quality of foreign grades. There is no barrier against the private sector importing gasoline if the fuels meet the Euro-4 emission standards," said Abbas Kazemi, the managing director of National Iranian Oil Products Distribution Company, Mehr News Agency reported.
The official made the statement on the sidelines of the launch of three single gas pumps in Tehran.
Observers say the move, if properly implemented, will introduce competition in the country's fuel retail market by giving consumers the option to buy state-produced gasoline or imported grades of higher quality with different price tags.
Kazemi said that there are approximately 20 million vehicles, including motorcycles, across the country and the government is facing difficulties in providing efficient services in the fuel supply and distribution chain.
"The government is unable to meet the (full) demand for petroleum products and private companies should chip in," the senior official said in a very rare admission of problems associated with gasoline production and sale that has been under government control forever.
Tehran has sought to bolster the private sector's role in fuel supply by privatizing dozens of petrol stations nationwide, making gas station owners responsible for storage, transportation and distribution of gasoline and the related costs.
The government announced two rounds of tender for privatizing a total of 140 gas stations last year and a third tender is expected to be held later this month for 60 petrol stations. 
The tenders are part of efforts to hand over the fuel retail business to private companies and curb the bloated bureaucracy in the large and growing energy market. 
Single Gas Pumps Launched
Three single gas pumps were launched in Tehran on Tuesday in a ceremony attended by Kazemi.
The gas dispensers are located in Tehran's District 22, the capital's most northwestern district and one of the recently developed regions on the outskirts of the sprawling metropolis.
It was not clear if the fuel dispensers have one or several nozzles to allow multiple cars to fill up at the same time.
Single gas pumps are aimed at easing the long queues of cars in Tehran's limited number of filling stations. 
Compared to gas stations, standalone petrol pumps are far less capital-intensive and easier to maintain, making them a viable investment for companies with limited capital. 
According to the NIORDC, Tehran Province has a total of 284 gas stations with 150 in the capital city. According to Tehran Traffic and Transportation Organization, between 3 million and 3.5 million vehicles are on the streets, which roughly translates into only one filling station for every 10,000 to 12,000 vehicles.
Data show that there is one gas station for every 7,500 people in the UK and one for every 2,600 people in the US. 
Every day 15 million liters of gasoline is supplied to Tehran Province, two-thirds of which is sold in the capital alone, according to Veys Karami, director of NIORDC operations in Tehran Province.
"We are studying proposals from 36 companies who seek to build single gas pumps in Tehran and Shahr-e-Ray (southwest of Tehran)," Karami said.
Kazemi says the shortage of filling stations is more "conspicuous in some  roadways where motorists have to drive 70-80 kilometers to get from one gas station to the next".

Short URL : https://goo.gl/bCbOzS
  1. https://goo.gl/sLiXVv
  • https://goo.gl/bmLGjQ
  • https://goo.gl/WxSgGo
  • https://goo.gl/KAgPJR
  • https://goo.gl/Q6w6Zg

You can also read ...

IOOC to Raise Crude Output
The Iranian Offshore Oil Company, a subsidiary of the National...
Oil Majors to Gain Clarity on Anti-Russia Sanctions
The Italian oil major Eni will discuss sanctions against...
Russia, Ukraine to Discuss Latest Gas Dispute
Ukraine’s state-held gas company Naftogaz and Russia’s gas...
Pasargad Energy Development Company will be commissioned to drill 126 wells in Jofeir and Sepehr fields.
In line with policies to help expand domestic companies' scope...
The California state court is seen as more favorable to the cities and counties.
California cities and counties seeking to hold five of the...
Brent, WTI Crude Futures Hit Highest in Two Weeks
Oil prices jumped on Friday, with Brent crude futures hitting...
Iraq Seeks Investors to Build Refinery
Iraq is inviting companies to bid for building a 70,000-bpd...
No Plan to Increase Oil Production in Next 12 Months
Iran does not intend to increase crude output in the next...

Add new comment

Read our comment policy before posting your viewpoints