The government is set to grant higher commission to distributors of compressed natural gas, an official at the National Iranian Oil Products Distribution Company said.
According to Fatemeh Kahi, the Oil Ministry currently gives 1,200-1,400 rials (2.5-3 cents) to private CNG station owners, which will be increased by 400 rials (0.8 cent), IRNA reported.
"Some 220 rials (0.5 cent) will be added to state-owned stations' commission," she added, without mentioning the current commission rate given to them.
The move comes in the wake of concerns over the tough financial problems facing CNG-stations owners, especially in the private sector. Many insiders have voiced concerns that unless commission fees are boosted, many stations will go bankrupt due to their growing debts.
No rise in CNG-station owners' commission has taken place in years, while the commission for gasoline sales has been raised by the government.
Although a bit late, this can help curb pollution and save natural resources. There are currently 1,450 stations across the country delivering CNG, yet many are believed to be inactive due to lack of liquidity or low profitability.
Natural gas offers many advantages over conventional petroleum products. CNG represents almost a 50% saving over petroleum products such as gasoline and diesel fuel. It is known as the cleanest burning fossil fuel.
