Add LPG to Fuel Basket Waiting for Cabinet Decision / Autogas Development Plan in Cities Near Refinery
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According to the economic correspondent of Fars News Agency, one of the actions of the 11th parliament during the review and approval of the 1400 budget law was to oblige the government to add LPG to the car fuel basket.
According to Budget Act 1400 The Ministries of Oil and Interior are obliged to provide the possibility of constructing stations and infrastructure for the legal use of liquefied petroleum gas (LPG) in the transport fleet with the priority of “public fleet and cargo” with the help of private and public sectors, up to 2 million tons per year. .
According to this law, the price of each kilogram of liquefied natural gas delivered to the distribution companies is equal to two thirds of the price of one liter of quota gasoline. Thus, by correcting the price of LPG and offering it in official positions, this clean fuel will be added to the country’s fuel basket after many years.
* Autogas development capital return in less than 4 months
Adding LPG to the car fuel basket has significant economic and environmental benefits, while also diversifying the fuel basket to help secure the fuel energy needed for transportation.
Fars News Agency in a report entitled “Return on capital Autogas development in less than 4 months / Private sector builds infrastructure by modifying LPG pricesHas studied the cost and benefits of LPG development in the country. According to capital return calculations, the autogas project is less than 4 months old, and by replacing LPG with gasoline and diesel and exporting these two fuels, the government will receive huge foreign exchange earnings.
* Salari: Unfortunately, in the previous government, no action was taken to develop autogas
Despite the government’s legal obligation to develop autogas in Budget Law 1400 and the economic and environmental benefits of this measure for the country, the Ministry of Oil of the twelfth government opposes the parliament plan without a valid expert reason and prevents the development of autogas until the end of the government.
But with the 13th government in place, the Ministry of Petroleum’s stance on the implementation of this law has changed, removing obstacles to the progress of adding LPG to the fuel basket of 2 million tons per year.
Jalil Salari, CEO of the National Company for Refining and Distribution of Petroleum Products, referring to the Ministry of Oil’s plan to develop autogas Says“LPG price adjustment for entering the car is done in such a way that by implementing it, part of the revenues will be spent to cover the costs of distribution companies, part of it will be spent on infrastructure construction according to the law and another part will enter the law in different years as government revenues.” “It will be budgeted.”
He continued: “Unfortunately, despite the law passed by the parliament, no action was taken in the previous government to develop autogas in the country. Naturally, the consumption of LPG in the transport fuel basket, like CNG, will not be widespread in all cities of the country. “LPG can also be used in private cars, but in a limited geographical area.”
“As a result, autogas will be developed in some parts of the country where there is a possibility of limited supply up to two million tons per year as well as continuous supply,” Salari said. “LPG must enter a part of the country’s transport fleet that moves within a limited radius and is located close to the bases of LPG production.”
This was the position of the then CEO of the National Refining and Distribution Company on the need to develop LPG, while the former CEO Alireza Sadeghabadi in various interviews with the attack on Autogas, called the diversification of the fuel basket by adding LPG without any advantage.
* Add LPG to the fuel basket pending the decision of the cabinet
However, the change in the government’s position on the development of autogas is not limited to the statements of the current and former CEO of the National Refining and Distribution Company. And acknowledges the need to implement Budget Act 1400 to add 2 million tonnes of LPG to the car fuel basket.
Weiss Karami says about the development of autogas in the country: “In limited areas, LPG can be considered as an alternative fuel. “The law also proposed that the fuel be provided in the vicinity of refineries that produce liquefied petroleum gas and in a limited way for public and city vehicles.”
Regarding the latest implementation of the Budget Law 1400 on the development of autogas, he said: “The executive by-law of this section of the budget law has been prepared by the Ministry of Oil since May and given to the government. “Implement it.”
The CEO of the Petroleum Products Distribution Company took this position on the need to develop LPG in cities near the refinery, while in the Twelfth Government, due to the conflict of interests of the Ministry of Petroleum, expert statements about autogas were met with negative reactions. .
Weiss Karami, CEO of the Petroleum Products Distribution Company, stated in his remarks in the Twelfth Government that the use of LPG is limited to the domestic sector and this fuel should not be included in the country’s fuel basket.
* The need to make the use of CNG more attractive than LPG and gasoline
The follow-up of Fars News Agency’s economic correspondent shows that the country is currently facing a surplus of 3 million tons of LPG for which there are no uses. The addition of 2 million tons of LPG could offset some of the disadvantage inherited from the Twelfth Government.
Of course, it should be noted that the official supply of autogas will be limited (2 million tons) in some cities after the price correction, thus maintaining the advantage of general development of CNG in the country. It is essential that the Ministry of Petroleum, with the special support of the CNG industry, make the use of this fuel more attractive to the people than LPG and gasoline, or increase its attractiveness.
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