NIOPDC: From strengthening gasoline reserves to boosting diesel stocks

SHANA (Tehran) - The CEO of National Iranian Oil Products Distribution Company (NIOPDC) outlined the company’s key initiatives for the past Iranian year of 1403, including bolstering gasoline reserves across storage facilities nationwide ahead of the Nowruz holidays and Eid al-Fitr. 

He noted that planning for power plant fuel supply and increasing diesel reserves are among the top priorities for the new Iranian year of 1404. 

Keramat Veis-Karami stated that the National Iranian Oil Refining and Distribution Company achieved unprecedented milestones in fuel supply and distribution in the past year. He reported that a total of 22.472 billion liters of fuel, including diesel and mazut, were delivered to power plants—a 47% increase compared to the previous year’s 15.25 billion liters. More than 13.106 billion liters of this total was gas oil.  

In September 2024, gasoline consumption hit a new record, averaging 132 million liters per day, Veis-Karami added. 
Despite challenges such as declining initial power plant reserves and rising summer travel demand, fuel stocks in key areas—including the Chalus storage facility—remain at favorable levels.  

Among the company’s major achievements in 1403 was the launch of the first phase of the Bandar Abbas-Rafsanjan pipeline, significantly improving gas oil transportation. Additionally, expanding the transport fleet with over 2,500 new road and rail tankers marked a crucial step in strengthening the country’s energy logistics infrastructure.  

9m liter increase in gasoline distribution in 1403

Daily gasoline distribution averaged 124.3 million liters in 1403, an 8% rise from the preceding year’s 115 million liters. Meanwhile, total gas oil consumption averaged 124 million liters per day, up 9% from 113 million liters in 1402.  

For the first time, a dual pricing system for liquefied gas was implemented under government regulations, helping curb domestic consumption, Veis-Karami said. 
A standardized framework for kerosene distribution was also introduced, with quotas allocated based on regional climate zones, significantly reducing national kerosene use.  

No fuel shortages expected during Nowruz

Despite multiple challenges, the company took effective steps to optimize fuel supply and distribution. Notable achievements included increasing diesel production by 9 million liters and gasoline output by 8 million liters. Combined with fuel imports, these measures ensure stable reserves for domestic use and the Nowruz holidays of 1404.  

Anticipating higher demand due to the overlap of Nowruz and Eid al-Fitr, the company prioritized boosting gasoline stocks nationwide. 
As a result, holiday fuel reserves are in better condition than last year, and no shortages are expected.  

Modernizing Smart Fuel System in 1403  

Under a new directive, the Oil Ministry must transition to using vehicle owners’ bank cards for gasoline sales instead of fuel cards. The NIOPDC  is redesigning the smart fuel system—in place for over 17 years—to meet security requirements and integrate with the banking network. The upgrade is slated for completion in 1403.  

Veis-Karami emphasized that securing power plant fuel and expanding diesel reserves remain top priorities for 1403. The company plans to coordinate with relevant agencies early in the year to build up reserves ahead of the colder months, ensuring uninterrupted supply. Efforts will also encourage power plants to use natural gas instead of gas oil during peak summer demand.  

Expanding CNG infrastructure  

To reduce air pollution and gasoline consumption, the company is prioritizing compressed natural gas (CNG) development. While 2,500 CNG stations have been built over the past 23 years, daily consumption has dropped from 23 million cubic meters to under 19 million. New plans aim to increase dual-fuel vehicles and expand CNG infrastructure, with consumption expected to rebound in 1403.  

Veis-Karami concluded by stressing the importance of human resources, noting that staffing shortages have been a major challenge. Many operational roles remain unfilled due to limited hiring, underscoring the need for greater focus on workforce development.  

News ID 656082

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