Mohammad-Sadeq Azimifar, speaking on Tuesday, 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) will be consumed in the transportation sector, with an annual growth rate of around 7%.

He attributed part of the increased consumption in the transportation sector to natural growth and part to weaknesses in the implementation of structural energy policies. Azimifar emphasized that 53% of the country’s vehicle fleet is outdated, and these older vehicles consume two to three times more fuel than the global average.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, the High Energy Council approved a document outlining energy supply for the transportation sector through 2041.

According to this 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 2021 to approximately 19 million cubic meters (6.5% share) in the first half of 2024.

Azimifar pointed out that reduced focus on CNG has been a key factor in its declining share in the fuel portfolio. He added, “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.”