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Standard liquefied petroleum gas stations are being built in the country

According to the economic correspondent of Fars News Agency, this week, President Seyyed Ibrahim Ra’isi announced the letter sent by the Speaker of the Islamic Consultative Assembly in a letter entitled “Amendments to the Budget Law of 1401 for the whole country in text, tables, attachments and various changes.”

According to row 10 of the expenditure section of Note 14 of Budget Law 1401, the amount of 2 thousand billion Tomans has been allocated to the National Company for Refining and Distribution of Petroleum Products to create liquefied gas supply stations and standardize cars.

Thus, the members of the Islamic Consultative Assembly re-emphasized the development of autogas and the official addition of LPG to the country’s fuel basket.

Table 1

* Official addition of LPG to the general fleet fuel basket and cargo

Earlier, the Islamic Consultative Assembly in the 1400 budget law had approved the addition of 2 million tons of LPG to the fuel basket, which was not implemented by the twelfth and thirteenth governments.

In paragraph (h) of note 1 of the budget law 1400 was approved:

The Ministries of Oil and Interior are responsible for the possibility of constructing stations and infrastructure for the legal use of liquefied petroleum gas (LPG) in the transport fleet with priority. Public fleet and cargo With the help of the private and public sectors, up to a total of 2 million tons per year.

The Ministry of Petroleum is authorized to purchase liquefied natural gas from other countries or to purify it with gasoline and diesel from the National Iranian Oil Company or other subsidiaries of the Ministry of Petroleum through relevant subsidiaries. All proceeds will be deposited in the account of the relevant subsidiary of the Ministry.

In the implementation of this paragraph, the following conditions must be observed:

  1. 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. The resources obtained from the implementation of this section are first used as a subsidy for liquefied petroleum gas for households living in areas without natural gas piping and the rest of it according to Table (14) to develop liquefied natural gas infrastructure in the transport fleet.
  2. The country’s budget and planning organization is obliged to provide a subsidy of 33 kilograms of liquefied natural gas per month to each household living in areas without natural gas piping.
  3. The subsidy per kilogram of liquefied petroleum gas is calculated as the difference between the cost price per kilogram of it for the final consumer in different geographical areas equal to the price of half (0.5) liters of gasoline quota and is deposited in the bank account of the head of the household and can only be used to buy liquefied petroleum gas.
  4. The Ministry of Petroleum is responsible for determining the priority vehicles for the use of liquid fuel, as well as the amount of fees for its distribution stations.
  5. The executive regulations of this section shall be prepared by the Ministries of Oil and Interior within two months after the notification of this law and shall be approved by the Council of Ministers.
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As emphasized in Budget Law 1400, the autogas development model in the country will be defined in the fuel basket of the public transport sector, and according to Budget Law 1401, fuel stations will be created for this part of the transport fleet.

* Autogas development regulations awaiting the decision of the cabinet

Keramat Visakrami, CEO of the Petroleum Products Distribution Company, referring to the implementation of the executive regulations for the development of the budget, which was enshrined in the budget law of 1400, said: The by-law was approved by the cabinet. The Ministry of Oil is obliged to implement it.

Thus, by re-emphasizing the budget law on the development of autogas, the ball is now in the court of the cabinet to approve the bylaws of this legal paragraph and implement it sooner.

* Annual waste of 60 thousand billion Tomans of LPG in pipelines

According to official reports from the Ministry of Petroleum, at least 3 million tons of LPG are wasted annually due to export restrictions on pipelines, while domestic consumption can be used to export the released diesel at a higher price and increase the country’s foreign exchange earnings.

According to calculations, the loss of South Pars LPG and refineries in pipelines and flares annually leads to a loss of about 60 thousand billion tomans.

* Legal requirement on electronic distribution of LPG and its removal from the basket of personal vehicles

Also, according to Note 14 of the Budget Law, the National Refining and Distribution Company is obliged to eliminate the diversion of this fuel to private vehicles by electronically distributing LPG through the Sadaf system.

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Due to the country’s advantage in the development of CNG, the illegal diversion of LPG in the fuel basket of private cars has reduced the desire of people to burn CNG cars.

Thus, in Budget Laws 1400 and 1401, the members of the Islamic Consultative Assembly have decided to support the country’s CNG industry by removing LPG from the personal car fuel basket, and on the other hand, by preventing the loss of this fuel in pipelines by developing autogas in a part of the public fleet. A decision that seems to maximize Iran’s national interests.

It remains to be seen whether the 13th government’s Ministry of Oil is willing to enforce the law and maximize national interests, or whether the conflict of interest and the management of the LPG islands in the Ministry of Oil will prevent this.

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