Iran's Gasoline Consumption at All Time High

EghtesadOnline: Gasoline consumption between 2011 and 2017 has shot up 50% that (regretfully) is big enough to be registered in the Guinness World Record, the National Iranian Oil Refining and Distribution Company's CEO said.

News ID: ۷۴۷۹۵۲

23 July 2019

"Such prohibitive consumption is simply not proportional to the number of cars in the country and is something worthy of pause for thought," Alireza Sadeqabadi was quoted as saying by ISNA.

Iranians used 73 million liters of gasoline per day in 2015, which rose by 8% to reach 80 million liter/d in 2016.

Consumption continued upwards in 2017, when the figure amounted to 88 million liters/d and NIORDC statistics show that since 2018 the level has exceeded 95 ml/d or 1.18 liters per capita, according to Financial Tribune.

NIORDC's daily gasoline production has surpassed 110 million liters, of which 76 million complies with Euro-4 and 5 emission standards.

It is reported that 12.4 million liters of gasoline in the capital city and 16.2 million liters in the province are consumed daily. In fact, residents in Tehran Province consume more gas than Poland, with its 40 million population and Turkey’s 80 million.

Only three countries, namely Germany, Britain, and Spain, consume more gasoline than Iran. This is while vehicle ownership per capita in Iran is 3-3.5 per 10 people while in Turkey it is more than 5 per 10 persons.

The government paid huge subsidies -- $51 million per day – for gasoline in 2016.

Energy experts including Sadeqabadi believe that it is high time the government starts putting the brakes on production of fuel-intensive cars. Replacing gasoline with compressed natural gas is among other proposals to curb rising consumption. Hybrids are also seen in Tehran albeit at a very slow pace.

Seemingly Unconcerned

"Although NIORDC has started exporting gasoline to international markets namely Iraq, Afghanistan, the Persian Gulf littoral states and the semi-autonomous region of Iraqi Kurdistan, the revenues play no role in the national budget. That is why policymakers are not sensitive enough to consumption issues," Sadeqabadi said.

He went on to say that officials have often warned about the strange consumption patterns, but because fuel is no more imported, they care little about how much fuel is used.

Asked about diesel output, he said 100 million liters of the fuel is produced on a daily basis, of which 44 million liters comply with Euro-4 emission standards.

Diesel-powered cars are banned in Iran and the fuel is primarily used in heavy-duty vehicles, power plants and industries.