Private investments in Iran's CNG stations stop
Azerbaijan, Baku, Dec. 27/ Trend M. Moezzi
Shortening petrol station queues and meeting consumers' demands are two major reasons for building new petrol stations and constructing these stations is impossible without the private sector's involvement, Ilna News Agency reports.
The problem is that there isn't enough incentive for private investors to get involved. Most recently, there have been efforts to find investors who are willing to build compressed natural gas (CNG) stations.
The absence of reasonable fees for the private sector is one issue that holds back investments, said Ardeshir Dadras, the managing director of the Iran CNG association.
Iran's private investors have stopped building CNG stations because there is no economic justification for investing in them. Payments to CNG station owners are very low and many have faced a lot of problems because of this, said Mr Dadras.
Currently, there are 1815 CNG stations in Iran. An additional 800 to 1000 are needed to satisfy demand and building them is impossible without the private sector.