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Iran to decrease CNG price by 10%

Business Materials 14 January 2015 12:49 (UTC +04:00)

Baku, Azerbaijan, Jan. 14

By Fatih Karimov - Trend: Iranian oil minister has reportedly agreed that compressed natural gas (CNG) price to be reduced by 10 percent in the country.

After gasoline price fell in the international market, the oil minister has agreed that CNG price to be reduced by 10 percent, a source told Iran's Fars news agency on Jan. 14.

However, the plan has not yet come into force due to unknown reasons, the source added.

CNG is currently sold at the price of 4,500 rials per cubic meters.

Earlier, Naser Sajjadi, managing director of National Iranian Oil Products Distribution Company, said CNG consumption has dropped in the country compared to the past two years due to its price which is almost equal to gasoline price.

Currently there are over 3.7 million cars in Iran running on CNG.

Some 90 percent of the major cities' taxis, as well as 60 percent of the vehicles used in public transportation sector, are currently using CNG.

According to officials, there are totally 17 million cars and 9 million motorcycles in Iran.

With 17 million cars, Iran totally has 5,000 gas stations, while neighboring Turkey with 9 million cars has 12,800 gas stations.

"Iran's CNG consumption was around five million liters per year in the Iranian calendar year of 1381 (ended March 20, 2003), but the figure reached seven billion in the calendar year of 1391 (ended March 20, 2013)," he said, adding that the figure shows over 1,400 percent increase.

Iranian government increased the prices of gasoline and other energy carriers as part of implementing the second phase of subsidy reform plan.

Edited by CN

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