ALBAWABA- Iran has started a statewide program to provide free compressed natural gas (CNG) to owners of dual-fuel cars, in a move aimed at reducing gasoline usage and relieving the growing pressure on the country’s fuel resources.
The scheme, launched by the National Iranian Oil Refining and Distribution Company (NIORDC), allows eligible drivers to fill their vehicles free of charge at over 1,000 participating CNG stations around the country. The plan, officials say, is aimed at reducing dependence on subsidized fuel and making greater use of Iran’s under-utilized natural gas infrastructure.
The decision has already resulted in larger lineups at CNG stations, as many taxi drivers and commercial vehicle operators have embraced the savings in the face of growing living costs and ongoing inflation.
Iran’s CNG network can deliver about 40 million cubic meters of gas a day, energy officials claim, but use is only about 15 to 16 million cubic meters a day, leaving much of the equipment unused.
Industry estimates put the number of dual-fuel vehicles in Iran at about 4.5 million. But the use of natural gas has slumped in recent years as many motorists have continued to utilize substantially subsidized gasoline or have ceased using CNG due of aged fuel tanks.
Authorities hope the free-fuel initiative and financial assistance to replace old gas tanks will return hundreds of thousands of vehicles to the CNG network and help reduce a daily gasoline shortfall of an estimated six million liters.
Economists say the measure indicates broader concerns about Iran’s fuel balance, not a long-term solution. Analysts say the government is aiming to curb gasoline demand while preparing broader reforms which might include changes to fuel subsidies, tiered gasoline pricing and expansion of public transit.
Iranian officials maintain that despite supply difficulties, the government is still bringing gasoline in via both land and sea routes, and that the issue is more about the cost of imports than access to the fuel itself.
While the free CNG program brings immediate financial relief to many drivers, analysts say its long-term viability will rely on whether it can substantially decrease gasoline usage and lessen pressure on Iran’s energy sector.
