Tehran, Iran, August 6
By Mehdi Sepahvand – Trend:
As the Iranian government has failed to implement the second phase of a plan to target subsidies, it is expected that gasoline consumption in the country will grow at 6 percent per year, Mehr news agency reported August 6.
Iran will cease to need gasoline imports by early 2018 as the Persian Gulf Star refinery is expected to come on stream.
This, added by the fact that the government has not year made gasoline prices free and continues to pay subsidies on gasoline, are among the reasons why Iran’s gasoline consumption remains high.
Iran’s gasoline consumption increased by 8.5 percent to 79 million liters during the four months of the current fiscal year (started on March 20).
Over 1.448 million of various new vehicles were sold at Iran’s market in 2016, according to the latest report of the International Organization of Motor Vehicle Manufacturers (OICA), released on July 17.
The figure indicates a rise by 18.5 percent year-on-year, however it is still less than 1.688 million of vehicles sold in the country in 2011.
Iran’s vehicle fleet is largely outdated and causes high energy intensity. Also, over the past few years the government has failed to lure more cars owners to use CNG as replacement for gas. Around the year 2000, the government started distributing CNG at very low prices to discourage gasoline consumption. The plan went successfully, rendering Iran the owner of the biggest CNG-powered fleet (3.5 million cars) in a few years. However, later administrations increased CNG prices by degrees and made CNG less and less attractive to car owners.