Rising Trajectory of Gasoline Production and Consumption

EghtesadOnline: Iran's gasoline output has risen by 18 million liters per day in the first four months of the current fiscal (started March 21), registering a 24% growth compared with last year's production, a deputy oil minister said.

News ID: ۷۴۵۷۸۶

04 August 2018

"Current gasoline output stands at 93.8 million liters per day, which reached 75 million liters per day at the end of last fiscal year," Alireza Sadeqabadi, chief executive officer of the National Iranian Oil Refining and Distribution Company, was also quoted as saying by Shana.

"The output rate will reach 95.5 ml/d in the coming days, as several refineries' overhaul operations are being completed," Financial Tribune quoted him as saying.

Referring to construction operations at Iran's largest refinery in the southern port city of Bandar Abbas, Sadeqabadi said, "The amount will exceed 100 ml/d upon the completion of Persian Gulf Star Refinery by January, which will help further cut gasoline imports and help increase its export."

He added that while its first two phases are active, the Persian Gulf Star Refinery's third phase has partially gone on stream putting the refinery's daily output at 27.5 million liters.

According to Sadeqabadi, once fully operational, the refinery will produce 36 million liters of high-octane gasoline as part of efforts to wean Iran away from the fuel's import.

"Of the country's prospective 100 ml/d, over 80 million liters will meet Euro-4 and -5 standards," he said.

The official said efforts are underway to increase the share of gasoline complying with Euro standards as soon as possible.

"Several petrochemical companies producing methyl tert-butyl ether are involved in overhaul operations, the re-launch of which will give us a hand to increase Euro-5 and Euro-4 gasoline output," he said.

MTBE is a gasoline additive used as an oxygenate and to raise the octane number.

In recent years, the government has geared up to become self-reliant in gasoline production. Total gasoline output stood at 60 ml/d back in 2013, while it has observed a 58% hike in five years.

Massive Consumption

Gasoline consumption between June 22 and July 22 amounted to a massive 2.8 billion liters.

"Iranians burnt 91.7 million liters of gasoline per day during the fourth month of the Iranian calendar," Sadeqabadi said, adding that the figure indicates an 8.5% hike compared with last year's corresponding period.

The NIORDC chief noted that average consumption between March 21 and July 22 reached 86.8 million liters per day, showing a 9.6% rise compared to that of last year's figure at 79.2 million liters per day.

Visiting gas stations in Amol and Mahmoudabad cities in Mazandaran Province, the official noted that the supply of gasoline in northern Gilan and Mazandaran provinces is continuing without a hitch and there are no concerns.

"Close to 90 million liters of gasoline are produced per day in 10 refineries across the country," he said.

NIORDC is supplying the fuel to northern regions not only via pipelines but also tanker trucks.

Rejecting speculations about shutting down filling stations in Mazandaran, the official said there is enough fuel in Sari and Rasht storage tanks.

According to Sadeqabadi, the sudden rise in the number of travelers to the northern regions has coincided with the refineries’ overhaul and exacerbated the situation.

"Despite the rise in domestic gasoline consumption in the last few months, the government has no plans to raise gasoline price," he said.

Denying claims that NIORDC has presented proposals to raise gasoline and diesel prices to cap growing consumption, he said, “NIORDC has managed to provide the much-needed fuel for consumers nationwide.”

Shazand Oil Refinery in the central city of Arak, Markazi Province, and Persian Gulf Star and Bandar Abbas refineries in the southern Hormozgan Province, as well as Esfahan Oil Refining Company, have limited their premium gasoline output, which is marketed as “super”. The gasoline is sold in major cities such as Tehran, Isfahan, Shiraz, Tabriz and Mashhad.