Iran's Fuels Market

Published Date: December 2005
Status: Available (Hardcopy / Softcopy)

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Why Iran will have to open up its domestic gasoline market to foreigners

The annual growth rate of domestic consumption of gasoline in Iran has already crossed an alarming level.
On the one hand, the volumes of gasoline produced by the 9 oil refineries of Iran have remained far below the demand for years, forcing NIOC to import increasingly huge volumes of the product at hiking prices. On the other, the facilities used for importing, storing and distributing the product are being overstretched and have come under enormous pressure to cope up with the needs.
Although various debates on how to tackle the issue have not been able to produce any concrete solution to the problem, they have one point in common; ‘the situation can simply not continue’.
Not only the vast amounts of cash involved for importing gasoline and distributing it, at heavily subsidized rates, are mounting great pressure on the treasury of the country, but the social injustice seen in allocating the subsidies to the minority of the population with private cars is an additional moral pressure on the State authorities in Iran.
As it is, the public transport system in Iran is quite inefficient and many economists believe that the huge State subsidies for fuels should be directed towards straightening out that incompetent sector, which will not only reduce the cumbersome traffic congestions, but will also effectively curb Iran’s gasoline consumption.

Many analysts believe that sooner or later Iran will have to open up its domestic fuel supply system to foreign companies. The prerequisite for which is to liberalize fuels prices in line with the global rates, foreseen in the 4Th Development Plan of Iran (April 2005-April 2010).
Foreign companies interested in that eventuality must know beforehand how the system is functioning now.
IranOilGas Network has prepared a report on “Iran’s Fuels Market” for the purpose.

1- Production/Consumption of petroleum products in Iran during the last 25 years (1979-2004)

2- Production of Gasoline, Gasoil and LPG during 2000-2009
2-1- Production during 2000-2004
2-1-1- Refining capacities
2-1-2- Gasoline Production
2-1-3- Gasoil production
2-1-4- LPG production
2-2- Productions during 2005-2009
2-2-1- Refining capacities
2-2-2- Gasoline production
2-2-3- Gasoil production
2-2-4- LPG production

3- Consumption of Gasoline, Gasoil and LPG (as vehicle fuel) during 2000 - 2009
3-1- Gasoline consumption during 2000 – 2004
3-1-1- Gasoline import during 2000 – 2004
3-2- Gasoil consumption during 2000 – 2004
3-3- LPG consumption during 2000 – 2004
3-4- Forecast for Gasoline consumption during 2005 – 2009
3-5- The Average Gasoline consumption of the vehicles in Iran
3-6- Gasoil consumption during 2005 – 2009
3-7- LPG consumption during 2005 – 2009
3-8- Export of petroleum products during 2000 – 2004

4- Storage, distribution and pricing of gasoline and Gasoil
4-1- Distribution of the fuel
4-2- Filling stations
4-3- Smart cards
4-4- The Quality of Gasoline and Gasoil of filling stations & How to control it
4-5- Fuel (Gasoline-Gasoil) pricing
4-6- Storing the fuel (Gasoline & Gasoil)

5- Alternative Fuels
5-1- CNG supply during Q1 of 2005
5-2- The 5-Year Plan to replace vehicles’ fuel by CNG – Construction of CNG stations
5-3- Quality of CNG
5-3-1- Dew point / water percentage
5-3-2- Hydrocarbons
5-3-3- Sulfur
5-3-4- Hydrogen Sulfide (H2S)
5-3-5- Carbon Dioxide (CO2)
5-3-6- Suspended particles
5-3-7- Volume of oil content
5-4- CNG Pricing
5-5- Volume of CNG Consumption

6- Appendices
6-1- Appendix 1
6-2- Appendix 2
6-3- Appendix 3