Financial Tribune - The government’s Economic Council has approved a proposal by the Oil Ministry based on which the state-owned National Iranian Oil Products Distribution Company has been tasked with helping convert 1.5 million gasoline-powered vans and taxis to compressed natural gas hybrids.

As per a directive issued by the key council last week, NIOPDC will get a grant of $500 million to help the conversion of the polluting gas-guzzlers to hybrid CNG engines, ILNA reported.

The move is aimed at curbing public transportation costs and improving air quality in mega cities.

NIOPDC will pay the money either directly to eligible car owners or to factories manufacturing CNG pieces and equipment namely tanks, kits and compressors.