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Iran to save 32 million liters of gasoline per day

Business Materials 17 December 2019 15:36 (UTC +04:00)
Iran to save 32 million liters of gasoline per day

BAKU, Azerbaijan, Dec. 17

By Elnur Baghishov - Trend:

Iran will save about 32 million liters of gasoline a day by implementing a project related to 1.4 million bi-fuel vehicles and a fuel consumption project, Deputy Minister of Oil and Executive Director of the National Iranian Oil Products Distribution Company Alireza Sadeqabadi said.

Sadeqabadi made the remark at the signing ceremony of a contract for the supply of 1.4 million bi-fuel vehicles worth 65 trillion rials ($1.54 billion) at the National Iranian Oil Company on Dec. 16, Trend reports referring to Shana.

The agreement was signed by Executive Director of the National Iranian Oil Products Distribution Company Amir Vakilzadeh and Executive Director of the Iranian Mellat Bank Mohammad Bigdeli.

“Some 1.5 million cars in Iran consume 18 million liters of gasoline a day,” the deputy minister said. “Iran's daily gasoline consumption will be reduced by 10 million liters as a result of a gasoline quota and bi-fuel vehicles.”

Sadeqabadi added that taking into account 50 cents per liter of gasoline, $5 million will be saved a day and $1.8 billion will be saved a year.

“The gasoline consumption in Iran has dropped by almost 22 million liters after the introduction of a gasoline quota and an increase in gasoline price,” the deputy minister said.

"In general, a decrease in consumption of gasoline by 32 million liters daily is equivalent to the daily gasoline production in Tehran, Abadan and Isfahan refineries," Sadeqabadi said.

In accordance with the agreement, free financial aid worth 65 trillion rials ($1.54 billion) will be rendered for Sedan cars ($330 per car), for van cars ($520 per car), lightweight pickup trucks ($410 per car), heavy duty pickup trucks ($420 per car) and passenger vehicles ($245 per car).

On Nov. 15, 2019, the price of gasoline sold on quota increased from 10,000 rials (23 cents) to 15,000 rials (35 cents) and the price of gasoline sold free from the quota increased to 30,000 rials (71 cents) in Iran.

An average of 98.7 million liters of gasoline were consumed daily from October 23 till November 15 (the day when the quota was applied and gasoline price increased), and an average of 76.6 million liters of gasoline was consumed daily from November 15 through December 6.

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