CNG Consumption Jumps after Iran Raises Gasoline Price

The head of Iran's National Iranian Oil Refining and Distribution Company said CNG consumption rose 11% in the week following an increase in the country's third-tier gasoline price.

Mohammad-Sadeq Azimifar said average daily CNG consumption nationwide climbed by about 2 million cubic meters, or roughly 11%, in the week after the gradual price reform took effect and the third-tier gasoline rate rose to IRR 100,000 (4.34 cent). The comparison was made against consumption levels in the first half of the Iranian months of Mordad and Shahrivar (roughly late July through early September).

Azimifar said the rise in CNG use, and the corresponding drop in gasoline consumption, reflects the positive impact of the price adjustment in easing the country's gasoline supply imbalance and reducing reliance on imports.

He added that a program to convert high-mileage vehicles used by ride-hailing and delivery platforms to CNG at no cost is a priority for the company and is currently underway. - Shana