A Majlis Research Center survey has revealed that total energy produced in Iran annually is equal to energy produced by burning 1.8 billion barrels of crude oil, of which 25% is consumed in the transportation sector.
The key sector primarily runs on gasoline, diesel, compressed natural gas and jet fuel, comprising 50%, 30%, 10% and 10% of the total energy respectively, IRNA reported.
The massive energy consumption for transporting people and goods is rooted in ageing and dilapidated vehicles in addition to poor intra-city and intercity railroads. Officials have been long oblivious to the fact that extending railroads can play a positive role in curbing energy use and cut the prohibitive fuel subsidies.
Hidden (indirect) subsidies paid for energy carriers (gasoline, diesel, CNG and jet fuel) was put at $19 billion in 2018. This is projected to reach $21 billion by the end of 2019, up 10%.
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