The CEO of the National Iranian Oil Products Distribution Company announced an 11% increase in compressed natural gas (CNG) consumption in the first week of implementing the third gasoline price reform plan. This increase in CNG consumption as an alternative to gasoline reflects the positive impact of the Ministry of Oil's non-price policies in managing the gasoline imbalance.
Details of CNG Consumption Growth
In the first week of implementing this plan, the daily consumption of CNG reached about 24 million cubic meters, which shows a significant increase compared to the previous week. This growth has occurred while the Ministry of Oil is striving to reduce the existing imbalance in gasoline supply by using CNG as an alternative fuel.
Read more: Significant increase in VLCC freight rates in September 2023
Economic and Environmental Consequences
Using CNG as a cleaner fuel compared to gasoline, in addition to reducing air pollution, can also help decrease dependence on gasoline imports. Increasing CNG consumption as an alternative fuel can ultimately lead to improved economic conditions and reduced national energy costs.
According to available information, the current CNG production capacity in the country is about 25 million cubic meters per day, indicating Iran's significant ability to supply this type of fuel to consumers. Given the planned arrangements, this capacity is expected to increase to 30 million cubic meters per day in the near future.
Ultimately, the growth in CNG consumption following the gasoline price reform is a well-considered policy that can serve as a successful model in energy management. This action not only helps improve economic conditions but also pays special attention to environmental preservation.
Read more: Heavy oil production in the Fujairah region reached 4.69 million barrels · Performance of EPI and ESI under the IAPH umbrella from January 2027
