Page 47 - IRANRptSep20

Iran plans CNG fuel conversion scheme for 1.5mn vehicles
Iran’s trade minister fired amid row over liberalising car market
owners can receive many vehicles that have been handed over to the Property Ownership Organisation to date if the owners of these vehicles have returned them to customs.
"Most of the cars available are among the cars over 2,500 cc, which cannot be numbered in the country," the representative added.
The Iranian government has announced a plan to convert some 1.46mn vehicles to run off compressed natural gas (CNG), YJC has reported. The project is aimed at diverting a substantial number of vehicles away from heavily subsidised petrol sales—taking into account, the oil price collapse of late, these sales are hammering Iranian state coffers. Iran is self-sufficient in the production of CNG, while car manufacturers in the country, including top two Iranian automakers SAIPA and IKCO, both offer CNG vehicle models. The project will be conducted by the National Iranian Oil Refining and Distribution Company (NIODC) through several phases, including one that arranges private vehicles at a reduced cost.
In the first phase, owners of taxis will be given free-of-charge conversions. Other commercial vehicle owners will be given reduced rates if they opt to convert.
The plan will open to private vehicle owners in the second phase to run within the next two years, according to NIODC.
There is a cut-off for vehicle owners, with older models excluded from the broader plan.
The cost of the scheme is estimated at €600mn (at the tertiary exchange rate) over the life of the plan; however, overall savings stemming from the removal of vehicles from petrol sales demand would amount to significantly more per annum, officials said.
Iranian President Hassan Rouhani has appointed a caretaker industry, mines and trade minister after firing Reza Rahmani for not following orders, Asbe Bokhar reported on May 12.
Rahmani’s departure appears to have occurred after a big behind the scenes battle over a push by Rouhani to liberalise the car market. Prices on the market have continued to soar in recent days.
Hossein Modares Khiabani has been appointed as the caretaker minister, according to the presidential website.
Rouhani assigned him five main tasks and called on him to pay special attention to plans for a surge in domestic production under the shadow of cruel US sanctions, IFP reported.
Reports in local media suggested that Rahmani's sacking had been in the offing for several weeks and that Rouhani was waiting for a parliamentary decision on allowing the establishment of a specific ministry for trade, something which was rejected by parliament on May 11.
The president also urged Modares Khiabani to step up intra-organisational coordination and work in effective cooperation with the state-run and private sectors.
Industry observers who spoke with ​bne IntelliNews​ suggested that the sacking was part of a wider battle between the ministry and the presidential office, with Rouhani’s office accusing the former minister of blocking progress in liberalising the market.
Some estimates say prices charged have increased by around 60% above regulated prices. The confusion in the market led many potential car buyers to hold off on a purchase until a clearer picture on prices emerged from the scrum of ministers and officials seen over the issue in the past week.
Meanwhile, cars imported into Iran continue to suffer a miserable fate.
47​ IRAN Country Report September 2020 www.intellinews.com