Sharp decline in CNG consumption in the country

According to Energy Press, the red siren has sounded for the demand for CNG in the country. The demand, which was about 23 million cubic meters in 1402, has now decreased to 16 million cubic meters. Industry activists say that if a solution is not found for the challenges of industry activists, the demand will reach about 13 million cubic meters in two months. With this in mind, it can be claimed that in the coming months, the growth rate of gasoline consumption in the country will increase, and thus the government will be forced to spend more money on importing gasoline. This is while the correct and legal determination of the fees for CNG stations and the implementation of the approvals of the Government-Private Sector Dialogue Council can prevent the closure of CNG stations and thus reduce the crisis that is currently affecting the country’s fuel market.
Heavy losses of breaking the law for CNG industry activists
Hamidreza Sohrabi, a member of the board of directors of the National CNG Association, stated during a press conference with reporters: In accordance with the resolution of the Cabinet of Ministers, since 1399, the fees of CNG refueling stations are reviewed every year by the Fee Determination Working Group and sent to the Government Economic Commission for review and then reflected to the esteemed Cabinet of Ministers for final approval.
He added: In 1403 and in accordance with previous years, after submitting a large amount of documents and analysis tables to the Consumer and Producer Protection Organization and reviewing them by this organization, a fair increase in the fees for 1403 compared to 1402, by 70 percent, was presented to the Fee Determination Working Group.
Sohrabi admitted: In an action outside the legal framework defined in the Cabinet resolution and in contradiction with the President’s instructions to refer matters to expert work, the Planning and Budget Organization, despite the opposition of other members of the working group for determining the fee (Ministry of Oil and the Support Organization) and also without sending the working group’s resolution to the Government Economic Commission for review, directly and directly reflected the 40% increase in the fee for CNG stations to the Cabinet. Unfortunately, in October 1403, the 40% increase in the fee for CNG stations was approved by the Cabinet, ignoring the realities of inflation and the severe accumulated losses of CNG stations.
He continued: After that, the CNG Association of the country immediately announced its objections to the violation of the budget plan organization to the government and parliament and, through the Government-Private Sector Dialogue Council, demanded that the issue be reviewed by the Government-Private Sector Dialogue Council and the full allocation of the expert fee determined by the support organization to the CNG positions. After holding two meetings in the Dialogue Council with the presence of representatives of the executive and supervisory bodies, the necessity of allocating an expert 70% increase to the CNG positions from the beginning of 1403 was approved and ratified.
Sohrabi continued: The Honorable Minister of Economy, who also chairs the Government-Private Sector Dialogue Council and the Government Economic Commission, confirmed that the Plan and Budget Organization did not follow the legal path stipulated in the Cabinet resolution, and sent the review and determination of the CNG positions’ fees in 1403 to the Government Economic Commission.
A member of the board of directors of the National CNG Association noted: After holding several meetings in the specialized, sub- and main commissions of the government, finally, in the meeting dated 12/26/1403, the allocation of an increase in the fee for CNG stations by 70 percent with the condition of payment from the beginning of 1403 to the end was approved by the government’s economic commission. However, unfortunately and for unknown reasons, despite the end of 1403 and a significant decrease in the rial value of the claims of 1403 stations due to the inflationary conditions prevailing in the country, it has not yet been sent to the esteemed government board for final approval.
Disregarding the approvals of the government-private sector dialogue council
Furthermore, Mohsen Johari, Chairman of the Board of Directors of the National CNG Association, told reporters: It is important to mention that in parallel with the holding of the dialogue council meetings, the National CNG Association, through correspondence and meetings held in the Islamic Consultative Assembly, requested expertise from the Energy Commission of the Assembly, and finally, the Energy Commission of the Assembly requested payment of 70% of the expert fee for CNG stations in 1403 through correspondence from the First Vice President.