Gasoline consumption boosts after rationing scheme

TEHRAN, Nov. 25 (MNA) – Traffic Police Chief General Kamal Hadianfar informed on Monday that following the implementation of rationing gasoline, domestic gasoline consumption has increased. “Consumption in the past two days has increased from 94 million liters to 105 million liters,” the Iranian General said. This is while, according to the reports, consumption of compressed […]

TEHRAN, Nov. 25 (MNA) – Traffic Police Chief General Kamal Hadianfar informed on Monday that following the implementation of rationing gasoline, domestic gasoline consumption has increased.

“Consumption in the past two days has increased from 94 million liters to 105 million liters,” the Iranian General said.

This is while, according to the reports, consumption of compressed natural gas (CNG) in Iran has also grown by 10 percent since the implementation of the gasoline rationing scheme.

“CNG consumption in the country has risen by two million cubic meters per day since the [implementation of] the gasoline rationing plan,” Head of the CNG promotion program at National Iranian Oil Product Distribution Company (NIOPDC) Hassan Qolipour said on Saturday.

On November 13, the Iranian government started rationing of subsidized gasoline and increased fuel prices as it plans to use the revenue for supporting underprivileged families.

According to a statement published by National Iranian Oil Products Distribution Company, the price for a liter of regular gasoline was increased to 15,000 rials (nearly 35 cents at the official rate of 42,000 rials per dollar) from 10,000 rials and the monthly ration for each passenger car was set at 60 liters. Additional purchases would cost 30,000 rials per liter.

Due to heavy subsidies and devaluation of its currency, Iran has one of the cheapest fuel prices in the world and the country has been fighting rampant fuel smuggling to neighboring countries.

In one of its latest reports dubbed “World Energy Outlook 2018”, the International Energy Agency (IEA) put Iran on top of the list of the world’s countries for energy subsidies. That means Iran holds the first place among the world’s countries in terms of the volume of subsidies which is allocated to energy consumption.