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Iran plans to boost CNG share in fuel basket to 25 percent

Business Materials 6 April 2013 12:14 (UTC +04:00)

Azerbaijan, Baku, Apr.6/ Trend G.Mehdi/

Iran plans to establish 314 new compressed natural gas (CNG) stations across the country in order to boost the CNG share in the country's fuel basket by 2 percent to reach 25 percent, IRNA quoted National Iranian Oil Products Distribution Company official Shahram Asadpour as saying.

"The number of compressed natural gas filling stations in the country stands at 1,976," he added.

The Natural Gas Vehicle Global says Iran is now the world's leader in terms of numbers of natural gas vehicles, ahead of Pakistan, Argentina, Brazil and India, ISNA reported.

In November 2012, Ardeshir Dadras the chairman of the board of directors of the union of Iranian CNG station owners stated that the country is facing the shortage of 160 CNG stations.

Increasing repair and maintenance costs, rising dollar price and value-added tax have increased costs of CNG station owners significantly, he said.

In September 2012, Dadras said that Iran may decide to import gasoline as many of CNG stations nationwide may be shut down due to unpaid debts to the administration.

Once the CNG stations are closed, gasoline consumption will be increased and the importation of gasoline will be more likely, Dadras told the Mehr News Agency.

CNG station owners have a total debt of 3.8 billion rials (some $310 million) he said, adding that around 1,930 CNG stations are currently operating across the country.

Each cubic meter of CNG is sold at 2,600 rials (some $0.2) to CNG stations.

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