Iran: Gasoline Sales Drop, CNG Rises

EghtesadOnline: Gasoline consumption fell by 22 million liters a day in the three weeks from November 15 after the government rationed gasoline and raised prices by selling it at two rates.

News ID: ۷۴۹۱۶۲

11 December 2019

Prior to the new policy, Iranians used 98.7 million liters of gasoline ar day on average between October 23 and November 14. However, during the three weeks after the plan was carried out nationwide, average daily consumption fell to 76.6 million liters, Mehr News Agency reported.

Last year between Oct 23 and Nov 14, average consumption was 88.9 million liters a day. Figures indicate that if gasoline was not rationed, the upward trend in consumption would continue, which could pose new challenges regarding fuel shortages in the not too distant future.

Fuel quotas (60 liters per car per month) were first introduced in 1981 and again in 2007 when consumption fell by 25 million liters in six months, Financial Tribune reported.

The government raised gasoline prices on November 15  to curb consumption and smuggling across borders.

As per a National Iranian Oil Product Distribution Company directive private car owners can buy 60 liters of subsidized gasoline every month with a fuel card at 15,000 rials (13 cents) a liter. Additional purchases cost 30,000 rials (26 cents) per liter.

While gasoline prices shot up to record levels, the price of compressed natural gas is unchanged, and as a result its consumption increased after the implementation of the gasoline rationing scheme.

CNG consumption increased by three million cubic meters per day during the three weeks after the plan (Nov 15-Dec 6).

Before gasoline was rationed, average daily CNG consumption was 19.2 million cubic meters (Oct 23-Nov 14). However, the figure reached 22.2 mcm/d soon after.