TEHRAN - National Iranian Oil Refining and Distribution Company (NIORDC) and Iran’s state-owned Iran Khodro Company (IKCO) signed a memorandum of understanding (MOU) to add new dual-fuel vehicles to the country’s public transportation fleet.

As reported by IRIB on Tuesday, based on the MOU, 1.46 million dual-fuel vehicles will be added to the public transportation fleet, reducing the country’s daily gasoline consumption by 10 million liters.

Implementation of the mentioned MOU is going to save the government 200 trillion rials (about $4.7 billion).

Iran has recently started a program for the rationing of subsidized gasoline and increased fuel prices to reduce the energy subsidies and to use the revenue for supporting underprivileged families.

According to the spokesman of Iranian Oil, Gas and Petrochemical Products Exporters Union (OPEX), the gasoline rationing scheme has made it possible for the country to export 25-30 million liters of gasoline every day.

Currently, Iran is exporting two groups of oil products namely “special products” such as bitumen, paraffin and base oil, and “specific products” including gasoline, diesel and fuel oil to other countries.

Iran produces 115 million liters of gasoline per day, of which 60 to 65 million liters are provided as subsidized fuel and another 20 million liters are sold in the free market, the rest which is about 30 million liters is exported.

EF/MA