Iran saves on 70 mlpd of gas oil via mileage-based distribution

Business Materials 22 January 2017 14:31 (UTC +04:00)

Tehran, Iran, January 22

By Mehdi Sepahvand – Trend:

Iran has succeeded in saving on 70 mlpd of gas oil through a distribution program that is based on vehicles’ mileage, said Minister of Transport Abbas Akhondi.

The distribution plan has also reduced the number of trucks aging over 35 from 127,000 to 52,000, the minister said in a ceremony on rejuvenating the country’s road transport system, ISNA news agency reported January 22.

The money saved from economizing on fuel will go into renovating the road transport fleet, the minister stated, adding, “In the first stage, renovating 65,000 trucks is put on agenda. Within this framework we are planning on a $1-billion-per-year gain through fuel economy.”

The mileage-based distribution of gas oil in Iran started in June 2015 both as a means to help refurbish the aging fleet and fight gas oil smuggling. Gasoline is subsidized in Iran and costs around 15 cents per liter.

There are 400,000 trucks, 20,000 buses, and 36,000 minibuses in the Iranian public transport fleet.