Iran Fuel Demand Sees Record Plunge

EghtesadOnline: Demand for gasoline fell by 24% between May and August compared to the corresponding period last year, head of the Gasoline Station Owners' Association (GSOA) said.

News ID: ۷۵۱۱۴۹

30 September 2020

“Gasoline consumption exceeded 98 million liters per day in the 120-day period in 2019 but declined in 2020 largely due to spread of the coronavirus and traffic restrictions,” Homayoun Salehi was quoted as saying by ILNA.

In the wake of the government’s decision to raise gasoline prices last November (demand then was 110 ml/d), fuel sales plummeted 16% in December and reached 95 ml/d.

The decline continued and was 85 million liters/d in January.

A similar pattern was seen in February when motorists across the country bought 75 ml/d of the fuel as the infectious disease peaked locking up large numbers inside their homes as lockdowns came into effect to fight Covid-19.

“Fuel consumption crossed 118 million liters per day in March 2019 when families hit the road for the annual Nowruz (Persian New Year) holidays. However, a steep decline in demand has persisted over the past six months.”

Gasoline sales never surpassed 75 ml/d in the last five months in Iran. This is while the state-run National Iranian Oil Refining and Distribution Company, a subsidiary of the National Iranian Oil Company, had predicted that in 2020 consumption would surpass 120 ml/d, the GSOA chief recalled.

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

Consumption climbed in 2017 when the figure reached 88 million liters/d and NIORDC data show that in 2018 and 2019 it exceeded 95 ml/d and 110 ml/d, respectively.