TEHRAN – Expanding the use of compressed natural gas (CNG) in Iran could save 20 million liters of gasoline annually within three years, according to Ali Mahmoudian, head of the National Association of Alternative Fuels and Related Services.

Speaking at the national conference “Green Prosperity: Energy Innovations and Clean Transportation” on Sunday, Mahmoudian emphasized that increasing CNG usage would significantly reduce the need for gasoline imports and address energy challenges.

“CNG currently accounts for 17 percent of the country’s fuel mix, which is inadequate for a natural gas-producing nation with the infrastructure capacity to supply 50 million cubic meters daily,” Mahmoudian said.

He noted that while 2,500 fueling stations are connected to the national gas network—a feat unmatched globally—expansion has stalled due to unresolved barriers.

Mahmoudian pointed out that during the 2000s, when gasoline demand surged, the CNG industry played a crucial role in stabilizing fuel supplies. However, the sector now faces obstacles, including tax policies, business constraints, and unfulfilled government commitments.

He warned of an impending fuel crisis, projecting a daily gasoline shortfall of 150 million liters by 2031 unless corrective actions are taken.

“Iran is rich in resources but poor in energy governance,” Mahmoudian said, highlighting the country’s underutilization of its vast underground energy reserves. He criticized the proposed 2025 budget, which allocates over 70 percent of funds to current expenditures rather than infrastructure, education, or research—areas prioritized by nations like Singapore, South Korea, and Japan.

Mahmoudian urged policymakers to invest in CNG development, emphasizing its potential to curb gasoline imports and deliver long-term economic and environmental benefits.

EF/MA