Iran Expects Further Fall in Gasoline Consumption as CNG, LPG Join Fuel Basket

The CEO of the National Iranian Oil Products Distribution Company (NIOPDC), citing the drop in gasoline consumption over the first 10 days of Aban, said that under current planning, the country's daily gasoline consumption must reach 120 million liters in Dey and Bahman (late December to mid-February).

Keramat Veiskarami spoke Monday on a state TV program, discussing the diversification of the country's fuel basket, he said average daily gasoline distribution and consumption has been 133 million liters. Since the start of Aban, however, consumption growth has fallen to zero, meaning gasoline consumption has shown no growth compared with the same period last year. In previous years, gasoline consumption routinely rose by 6% annually. He added that, encouragingly, the trend moved from zero to negative in the first 10 days of Aban: consumption in that period was 1.2% lower than in the same period last year. The decline could be attributed to gasoline demand management through both price and non-price measures.

Turning to consumption by province, the NIOPDC CEO said Tehran has the highest consumption at 20 million liters a day, followed by Fars, Razavi Khorasan and Isfahan. Some border provinces also have high per capita gasoline consumption, including Hormozgan, West Azerbaijan and Fars. The company is therefore working to implement a suitable plan for provinces facing high consumption growth. Veiskarami said the plan could include measures that have been in place since Mordad (late July to August) in Tehran and 11 border provinces, where emergency cards, also known as station cards, were eliminated.

An 11-Million-Liter Drop in Gasoline Consumption

Describing the steps taken so far to curb fuel consumption, he said three measures have been implemented. Average daily consumption in the first 16 days of Shahrivar 1405 was 144 million liters, but after the changes to the third-tier gasoline price, it fell to 133 million liters in the second half of the month. The NIOPDC CEO said that, under the Cabinet resolution and the Article 8 Working Group decision of 2 Azar 1404 (November 23, 2025), average daily gasoline consumption in the second 15 days of Shahrivar was 11 million liters lower than in the first 16 days.

On the withdrawal of station cards, he explained that the measure has been pursued since 1403 (2024–25) under the Budget Law, with the aim of cutting station-card use to 5% and raising the use of personal fuel cards. The plan was first piloted in Kerman Province, and the measures taken have so far saved IRR 130 trillion (US$47.61 million). On the president's instruction, this sum is to be directed toward improving people's livelihoods, including raising the credit on electronic grocery coupons (kalabarg). The government has earmarked the savings for supporting low-income people.

CNG Consumption Rises as Station Cards Are Withdrawn

Veiskarami said Kerman was the first province where station fuel cards were withdrawn, and the first result was shorter queues at gasoline stations. In Mordad this year, gasoline consumption fell by 13% while CNG consumption rose. He added that before 16 Shahrivar (September 7), CNG consumption had reached 14.7 million cubic meters. That figure is still short of the target, but the recorded increase is significant. The NIOPDC CEO stressed that, under the target set, daily gasoline consumption must reach 120 million liters in Dey and Bahman. "Fortunately, people are cooperating," he said. "We should not forget that producing gasoline is also costly for the government, so the more demand management plans we implement and the more CNG consumption we raise, the closer we will come to this goal." He said the country can currently supply 40 million cubic meters of CNG a day, equivalent to 40 million liters of gasoline.

100% Supply Reliability for CNG Stations in Winter 1404

Speaking about the stability of gas supply to CNG stations last winter, Veiskarami said outages at these stations were very limited, occurring only in a few cities in the northwest and on certain days, and added up to less than a single day. He said that in earlier years, brief outages at CNG stations occurred at times of peak gas demand, but last winter such restrictions were negligible and affected only a few northwestern cities on some days.

90% Increase in CNG Station Handling Fees

Veiskarami said the gas supply reliability rate for CNG stations was close to 100%. In 1405 (2026–27), he added, the government is continuing to back the sector, and for the first time, CNG station handling fees have risen by 90% from last year. Noting that CNG stations are costly to operate and maintain, he said government support can help them stay in operation and strengthen their infrastructure. On the arrears owed to contractors who converted gasoline-only vehicles to dual-fuel, the NIOPDC CEO said payment should have been made under the Law on Removing Barriers to Competitive Production, and the necessary steps have been taken. Veiskarami also addressed the plan to convert diesel vehicles to run on both diesel and CNG. In 1399 (2020–21), he said, a diesel tractor-trailer truck was converted to dual-fuel as a pilot, and field tests were carried out. He said the country has the technical capacity to expand the plan, but national standards must be developed before it can be rolled out widely. The company has corresponded with the Iranian National Standards Organization, which has asked the Oil Ministry to prepare and submit an initial draft of the required standards. The NIOPDC CEO said that once the necessary standards are drawn up and announced, existing capacity can be used to convert diesel vehicles to dual diesel–CNG systems.

Expanding LPG Supply in the Fuel Basket

On plans to expand LPG supply in the transport sector, Veiskarami said four LPG stations have now been launched, in Tehran, Tabriz, Urmia and Shahroud, selling the fuel to vehicles at IRR 30,000 (1.09 cent) per liter. He added that permits were issued last year for 45 LPG stations, 10 of which are ready to open. The NIOPDC CEO said applications to build LPG stations can now be submitted: applicants can register for a permit through the station request portal, following the available guidelines. Veiskarami said the handling fee for LPG stations is also under review and will be announced soon, adding that the company is working to bring LPG into the country's fuel basket as well. - Shana