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Effective policies launched to diversify Iran’s vehicle fuel mix
Mohammad-Sadeq Azimifar, speaking during the inauguration ceremony of projects aimed at diversifying the fuel portfolio, said that by the end of the Iranian year 1403 (March 20, 2025), an estimated 71% of petroleum products (approximately 185 million liters per day) will be consumed on the roads, with an annual growth rate of around 7%, Shana reported.
He attributed part of the increased vehicle fuel consumption to natural growth and part to weaknesses in the implementation of structural energy policies. Azimifar emphasized that 53% of the country’s vehicles are outdated, burring two to three times more fuel than the global average.
The deputy oil minister noted that diversification of the fuel portfolio in the transportation sector has not been adequately addressed.
He recalled that in 2020, Iran’s High Energy Council approved a document outlining energy supply for the transportation sector through 2041.
According to the document, CNG’s share in the transportation fuel portfolio was projected to reach 23% by 2041.
However, CNG consumption has declined from 23 million cubic meters (12% share) in the first half of the Iranian year of 1400 (2021) to approximately 19 million cubic meters (6.5% share) in the first half of the current Iranian year.
Azimifar pointed out that reduced focus on CNG has been a key factor in its declining share in the fuel portfolio.
“Fortunately, with effective policymaking and the efforts of colleagues, we have initiated projects such as the free conversion of public fleets, the operation of new stations, and the construction of 100 new CNG stations across the country,” he added.