Compressed natural gas consumption has declined 15% since May when prices rose by 10%, head of the Iran CNG Association said.
“Unlike previous years when CNG use increased by at least 10%, the trend has reversed in the last six months and is expected to exacerbate by the yearend,” Ardeshir Dadras was quoted as saying by IRNA.
Keeping gasoline prices unchanged while raising CNG prices has pushed up consumption of the former depressing use of the latter, the official noted.
Close to 90 million liters of gasoline is burnt every day and is expected to surpass 100 ml/d by next March. Each kilogram of gas is sold for 6,570 rials (4.6 cents), while one liter of gasoline costs 10,000 rials (9 cents).
"So long as the difference between the two tariffs is not tangible, motorists will not prefer CNG.”
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