Iran to remove diesel, kerosene, LPG from energy basket

Oil&Gas Materials 16 February 2016 16:18 (UTC +04:00)

Baku, Azerbaijan, Feb.16

By Emil Ilgar - Trend:

Diesel, kerosene, and LPG will be removed from Iran's energy basket, Oil Minister Bijan Namdar Zanganeh said.

"Iran is among the top countries in the world in terms of expanded gas supply network. So, the use of diesel, kerosene, and LPG will be removed gradually from the country's energy basket," IRIB quoted Zanganeh as saying on February 16.

Liquid fuels consumption in the transport section costs around $15 billion, he said.

"Power plants, factories, and even rail transportation will be gradually supplied with gas," he noted.

Some 20 million cubic meters of gas (CNG) is being consumed per day by cars in Iran, the minister said. He added that some 90 percent of the country's total population is under the coverage of gas network.

"There are 3000 CNG stations nationwide, but they are operation with 50 percent of their capacity," he said.

Zanganeh further said that the price of gas is much lower than the price of diesel and gasoline.

He further said that the use of gas should be expanded in Iran's public transportation system.

As for LNG, the minister said that over the next two years, LPG which is produced by domestic refineries will have no consumers, so, it should be included in the basket of fuels for cars.

The latest National Iranian Oil, Refinery and Distribution Company's (NIORDC) statistics say the country consumed 84 billion liters of liquid fuels worth $48 billion as well as 172.3 billion cubic meters of gas during last year.

Liquid fuel consumption


Y/Y change (%)


69.591 (Million Liters/day)



10.059 (Million Liters/day)



100.158 (Million Liters/day)



36.69 (Million Liters/day)


Natural gas

472 (Mcm/d)



5,622 (Tons per day)