Iran increases CNG price by 100 rials

Business Materials 31 July 2013 16:26 (UTC +04:00)

Azerbaijan, Baku, July.31/ Trend R.Zamanov

Iran has increased the price of CNG by 100 rials, as each cubic meter of CNG is currently being sold at 3100 rials (some $0.1 based on the price of USD at the free market), the ISNA News Agency reported.

Compressed natural gas (CNG) is a fossil fuel substitute for gasoline (petrol), Diesel fuel, and propane/LPG.

Although CNG's combustion does produce greenhouse gases, it is widely considered a more environmentally "clean" alternative to conventional fuels; plus, it is much safer than other fuels in the event of a spill (as natural gas is lighter than air, and disperses quickly when released). CNG may also be mixed with biogas (produced from landfills or wastewater).

The Iranian parliament's (Majlis) integration committee has also proposed increasing price of gasoline in the current Iranian calendar year if the second phase of the subsidy reform plan is not implemented.

According to the proposal, semi-subsidized gasoline which is currently sold at 4000 rials, will be sold at 7000 rials, and the free market gasoline price will be increased to 9000 rials from 7000 rials (each USD was traded at the price of 31,700 rials today t the free market).

The premium gasoline price will be increased by 3000 rials to 8000 rials, as well.

Currently gasoline is sold at two prices: a 60 litre monthly allowance at 4000 rials per litre and any amount above that at 7000 rials per litre.

Gasoline consumption in Iran has risen during the past two years so that it reached 64 million litres per day in the past year compared with 59 million litres two years ago.