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Iran’s energy consumption should be reduced by 50 percent

Oil&Gas Materials 19 February 2011 11:55 (UTC +04:00)

Azerbaijan, Baku, Feb. 19 / Trend, A.Yusifzade /

Iran's energy intensity should be reduced by 50 percent during next 10 years, Shana reported quoting Iranian Fuel Optimization Organization managing director, Abbas Kazemi as saying.

Kazemi said the goal is attainable just through removing fuel subsidies and raising the price of fuels to their finished prices.

Kazemi described targeting fuel subsidies as the driving force of reforming energy consumption pattern adding the aim of the plan is to improve the country's energy intensity on the one hand and preserving the level of consumers' welfare on the other, both of them are attainable through energy efficiency.

Referring to rising demand for Fluorescent Light Bulbs, the official stipulated that during the first day of implementation of the targeted subsidies law, 50 million low consumption lamps were sold showing the impact of implementation of the law on the pattern of energy consumption.
He also said that surveys indicated that double paned windows' manufacturers who always were complaining working with just 30 percent of their capacity are facing with high demand for their products following the starting implementation of the targeted subsidies law.

According to Kazemi Optimizing fuel Consumption Company is in charge of drafting, updating and promotion of energy consumption standards in transportation, building, house appliances and industry sectors. He went on to say that in transportation sector, fuel consumption by domestically made vehicles reduced from 11.5 liters per each 100 kilometers in 2001 to 8.5 liters last year.

Referring to the Optimizing Fuel Consumption Company's efforts on expanding diesel vehicles in the country, Kazemi noted that it was expected average fuel consumption by domestically manufactured vehicles to fall to seven liters per 100 kilometers up to the end of the Fifth Five Year Development Plan in 2016.

On December 19, 2010 Iranian President Mahmoud Ahmadinejad announced the launch of his economic reform plan aimed at cutting government subsidies on key consumer goods, including gasoline, natural gas, electricity and some food items.

Ahmadinejad said that all subsidies would gradually be removed during a five-year period.

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