Iran: CNG use in vehicles helps cut fuel costs

Financial Tribune – Converting gasoline-powered vehicles, especially vans, to compressed natural gas hybrids can help reduce fuel costs for motorists by 100%, deputy managing director of the state-run National Iranian Oil Products Distribution Company said.

“Vans need at least 1,000 liters of gasoline per month and filling up with the fuel will cost 30 million rials ($250). Nonetheless, if they use CNG (1000 cubic meters per month), up to $208 per month can be saved,” Mohammad Rezaee was quoted as saying by IRNA.

Each cubic meter of CNG is sold for 5,000 rials (4 cents), while a liter of subsidized gasoline costs 15,000 rials (13 cents) and non-subsidized fuel 30,000 rials (26 cents).

As per a new directive issued by the NIOPDC on Nov. 15 to sell gasoline at two rates, non-hybrid vans are entitled to get 200 liters of subsidized fuel per month and the rest costs 30,000 rials a liter.

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