Following the implementation of the new gasoline price from the morning of September 8 at 10,000 tomans, the consumption of compressed natural gas (CNG) in the country has increased by about 2 million cubic meters per day. This change in fuel consumer behavior indicates an 11% increase in CNG consumption compared to the first half of September and August.
Trends in Fuel Consumption Changes
Mohammad Sadegh Azimi Far, CEO of the National Iranian Oil Products Distribution Company, has attributed this increase in consumption to a simultaneous decrease in gasoline consumption, stating that this change could help reduce gasoline imbalance and lessen reliance on imports. However, to fully assess the impact of this plan, data on gasoline consumption in the coming weeks and months is needed.
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In the first week of implementing the new gasoline price, the average CNG consumption in the country increased by about 2 million cubic meters per day. This significant growth in compressed natural gas consumption occurs especially as the rates for 1,500 and 3,000 tomans gasoline quotas have remained unchanged, while the third gasoline rate has increased to 10,000 tomans.
CNG Stations and Existing Infrastructure
The CEO of the National Oil Products Distribution Company, Karamat Vis Karami, had previously announced that the average daily gasoline production in the first five months of the year 1405 was about 122 million liters, while the average consumption was 132 million liters. Thus, the average gap between gasoline production and consumption has been about 10 million liters per day, which has increased consumption pressure in the late summer days.
To accommodate part of the demand for gasoline, increased use of CNG as an alternative fuel could be a suitable solution. According to recently published information, the supply capacity of CNG in the country is about 40 million cubic meters per day, while the current consumption is reported to be about 14 million cubic meters per day. This means that there is potential for greater utilization of existing capacities.
Given the price difference between CNG and gasoline, vehicles that can use both fuels may show a greater inclination to use CNG. The CNG price has been set at 453 tomans per cubic meter, which is more competitive compared to the third gasoline rate. Thus, part of the increase in CNG consumption may be related to a shift in fuel choice in dual-fuel vehicles.
However, the 11% increase in CNG consumption should not be solely attributed to the increase in gasoline prices, as other factors such as travel frequency, seasonal conditions, and the behavior of dual-fuel vehicles can also influence daily gas consumption.
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