Converting 1.4m Gasoline-Powered Vehicles to CNG Hybrids in Iran
National Iranian Oil Products Distribution Company and Bank Mellat signed an agreement on Sunday to contribute to a plan to convert gasoline-based vehicles to hybrid CNG engines.
According to the MoU, $510 million required to convert 1.4 million gasoline-powered vehicles, including pick-up trucks, taxis and vans, to CNG hybrids will be paid by Bank Mellat, the Oil Ministry news agency Shana reported.
According to the High Council of Economic Coordination, the government will provide grants to pick-up trucks, taxis and vans.
The government raised gasoline prices by 50% to 200% on November 15. NIOPDC said on Nov. 14 midnight that subsidized gasoline would be sold for 13 cents a liter up to 60 liters for each car every month. Additional purchases will cost double.
Rise in CNG Consumption
However, as CNG prices have not risen so far, its consumption increased by three million cubic meters a day during the three weeks after the plan (Nov. 15-Dec. 6). Each cubic meter of gas is sold for 3.5 cents, three times cheaper than gasoline.
Before gasoline was rationed, average daily CNG consumption was 19.2 million cubic meters (Oct. 23-Nov. 14). The figure reached 22.2 mcm/d soon after.
Of the 19 million vehicles in Iran, over 5 million have hybrid CNG engines. The share of CNG in fuel consumption is 20%.
More than $2.4 billion has been invested to expand CNG use in the last decade and contribute to the global effort to reduce the CO2 footprint.
Iran is 5th in global CNG consumption. There are over 2,500 CNG stations in the country. Boosting CNG share in the fuel mix can have multiple advantages, especially cutting gasoline demand and reducing air pollution.
source: Tasnim News Agency
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
