Gasoline Consumption Falls in Iran While CNG Rises

Consumption of compressed natural gas (CNG) in Iran has increased by about 12% since the introduction of a third gasoline pricing tier, while gasoline use has declined by roughly 3%, Mohammad-Sadeq Azimifar, head of the National Iranian Oil Products Refining and Distribution Company, said Tuesday.

Azimifar said the changes showed that gradual fuel-pricing reforms could influence consumption patterns and encourage motorists to shift toward alternative fuels. “The implementation of the plan has had two effects,” Azimifar said. “In the CNG sector, we have seen about a 12% increase in consumption, with greater interest in using this fuel, particularly in public transportation and online ride-hailing services.”

Gasoline consumption during the implementation period was about 3% lower than in the same period last year, he said. Azimifar said authorities are developing several initiatives to manage and improve transparency in fuel consumption. The projects are being introduced in phases, with results evaluated at each stage before successful measures are expanded to larger groups, he said.

About 40% of Iran’s gasoline consumption is currently carried out using emergency fuel cards at service stations, according to Azimifar. He identified the cards’ use as a source of both administrative intervention and a lack of transparency because station operators control the cards and fuel purchases cannot always be clearly attributed to individual consumers. Pilot programs include assigning identification numbers to emergency station cards, he said. The government also plans to use data-driven and smart technologies to detect irregularities in fuel distribution while ensuring that new measures do not make refueling more difficult for consumers.

Azimifar cited a case in which license-plate recognition systems showed that one vehicle had used a station’s free fuel card nearly 70 times over a two- to three-week period. He also highlighted the large price gap between subsidized fuel in Iran and prices in neighboring countries.

Meanwhile, Azimifar said diesel consumption has fallen about 6% compared with 2024, helping Iran move from being a diesel importer to an exporter. He also said fuel stocks at power plants are at a satisfactory level ahead of winter, providing a backup as natural gas shortages are expected to intensify because of damage to gas infrastructure during the war. He called for stronger cooperation between the oil and energy ministries and urged households and industries to cut gas consumption. A 10% improvement in gas efficiency and consumption management could help ensure stable supplies to different sectors during the winter, Azimifar said. - Shana