The increase in gasoline prices on September 8, 2023, from 5,000 to 10,000 tomans has created significant changes in fuel consumption patterns in Iran. With this change, daily gasoline consumption has decreased to about 9 million liters, while CNG (compressed natural gas) consumption has increased by 15 percent.
Replacing CNG for Gasoline
Estimates indicate that about 4.1 million liters of the decrease in gasoline consumption is attributed to the increase in CNG consumption. This change in the energy consumption mix has made CNG a potential tool for managing fuel imbalance.
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Data published by the National Iranian Oil Products Distribution Company shows that there are about 2,500 active CNG stations in the country, with a supply capacity of about 40 million cubic meters per day; whereas, daily consumption before the recent increase was about 14 million cubic meters.
The Impact of Pricing Policy on Consumer Behavior
This change in consumption reflects the impact of pricing policy on consumer behavior; such that one week after the implementation of the new policy, CNG consumption increased by about 2 million cubic meters per day. In this situation, it is expected that if the current trend continues, the volume of substituted gasoline will reach about 1.5 billion liters per year.
It is essential to note that the policy of converting high-mileage vehicles to CNG is of particular economic importance. Currently, there are 4.3 million dual-fuel vehicles in the country that provide the necessary capacity for fuel conversion.
Ultimately, effective use of existing capacities and changing consumption patterns can significantly reduce gasoline imbalance and better manage the country's energy resources.
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