The number of CNG vehicles in Iran has increased to 3,908,604 units following the implementation of a program to convert public vehicles to bi-fuel technology, according to data released by National Iranian Oil Products Distribution Company (NIOPDC). In addition, with this program, the distribution capacity of CNG in filling stations across the country has now reached about three million cubic meters (mcm) per hour and on average, about 22 mcm of CNG is supplied on a daily basis.
Back in December 2019, the National Iranian Oil Refining and Distribution Company (NIORDC) and Iran’s state-owned Iran Khodro Company (IKCO) signed a memorandum of understanding (MOU) to add new bi-fuel vehicles to the country’s public transportation fleet. The mentioned MOU was aimed to add 1.46 million natural gas vehicles to the public transportation fleet, of which so far 25,000 cars have been converted.
Based on the NIOPDC data, as of September 22, a total of 24,621 public vehicles have become bi-fueled across the country, and 22,520 vehicles are waiting to be converted.
In addition, Iran has recently started a program for the rationing of subsidized gasoline and increased fuel prices to reduce the energy subsidies and to use the revenue for supporting underprivileged families. This plan has led to the reduction of gasoline consumption while promoting CNG in the country.
Iran’s CNG consumption stood at 19 mcm per day before the implementation of the fuel rationing scheme, however, in mid-September, an official with NIORDC announced that the daily consumption of CNG has reached 25 mcm in Iran.
There are currently 2,495 CNG stations across Iran that supply 22% of the country’s fuel basket. Iranian Oil Ministry considers CNG as the national fuel, therefore, it has it on the agenda to increase the share of this fuel in the national energy basket.