Iran Eyes Slashing Gasoline Consumption Via Standard Cars

Several Iranians pushing their cars to a gas station
Several Iranians pushing their cars to a gas station

An Iranian official says Iran's soaring gasoline consumption could be slashed if it could produce internationally standard vehicles.

Jalel Salari, CEO of the National Iranian Oil Refining and Distribution Company, emphasized that adopting the standards could lead to a daily reduction of 50 million liters (over 13 million gallons) in gasoline consumption.

"If we were producing standard cars, daily gasoline consumption would decrease to 60 million liters (approximately 16 million gallons), allowing us to export 50 million liters daily."

Salari underscored the stark contrast between Iranian cars' high fuel consumption and the global average, underscoring the substantial gap in meeting international standards. He addressed the inefficiency and fuel wastage in domestically produced low-quality cars, an issue previously criticized by authorities.

Additionally, the deputy minister of oil justified Iran's gasoline deficit, citing an annual increase of two million vehicles that contributes an extra five to six million liters (1.3 to 1.6 million gallons) to daily gasoline consumption.

The country's gasoline shortage is exacerbated by the transformation of one-third of Iran's refining products into mazut and bitumen. While the statement did not specify the status of Tehran's refinery or others, the imbalance significantly contributes to the shortage of petrol.

Official statistics from the National Iranian Oil Refining and Distribution Company indicate that gasoline constitutes only 28% of Iran's refinery products. Modern refineries, exemplified by those in the UAE, convert a mere 4% of received crude oil into mazut, allocating the remainder to high-quality products such as gasoline.

As Iran grapples with an escalating gasoline deficit since last summer, the government has resorted to limited imports of low-priced mazut substitutes. However, the current administration led by President Ebrahim Raisi has faced criticism for a lack of transparency in reporting the volume of gasoline imports.