Latest news, production statistics, and articles about CNG & LPG technologies
In line with promoting the replacement of gasoline with CNG fuel, a free dual-fuel vehicle conversion plan for private cars was introduced. This means that all owners of private vehicles, as well as individuals who use their private cars for public transportation, can also benefit from the free dual-fuel conversion program just like public vehicle owners, and have their cars equipped with CNG tanks at no cost. However, according to the head of the National CNG Association, due to the lack of sufficient funding, it does not seem likely that the free dual-fuel conversion plan for private cars will be implemented anytime soon. Therefore, authorities are exploring alternative incentives, such as providing free CNG fuel, to encourage vehicle owners to switch to this cleaner fuel. As a result, not all private vehicles are eligible to register for the free CNG dual-fuel conversion program. Only certain types of vehicles — namely private passenger cars and ride-hailing taxis — can receive partial financial support from the government for CNG installation, with the remaining cost paid by the owner. To qualify, these vehicles must be recognized as active vehicles, meaning they must travel at least 1,000 kilometers per month. There is no need to submit any documents to prove this, as it is verified automatically through government systems. Once verified, the list of eligible vehicles is sent to the National Iranian Oil Products Distribution Company (NIOPDC) so that the owners can receive the government subsidies for CNG conversion.
Overview. The global compressed natural gas (CNG) market size was valued at USD 174.03 billion in 2024, growing at a CAGR of 11.70% from 2025 to 2034. Key factors driving demand for CNG include rising urbanization, increasing production of CNG vehicles, and rising petroleum prices.Due to rising fuel prices and the economic benefits of dual-fuel vehicles, the CNG market has seen remarkable growth. Consumers are more inclined to use dual-fuel cars for lower fuel costs and longer engine life. Workshops and authorized conversion centers have also reported increased demand and are offering more extensive services.
Emerging Technologies and Improvements in Dual Fuel Systems Recent innovations focus on developing more sophisticated electronic control modules (ECMs) and advanced fuel injection systems. These advancements enable precise control over fuel mixtures, ensuring optimal performance under diverse operating conditions.Using advanced kits, electronic control systems, and high-quality standards, the automotive industry has elevated dual-fuel production. These technologies improve engine efficiency, reduce fuel consumption, and minimize emissions. Companies continue to invest heavily in research and development to improve product quality.
| Year | Total Production | Passenger Cars | Vans & Light Trucks | CNG Conversion Kits |
|---|---|---|---|---|
| 2024 | 12,500 | 9,000 | 2,500 | 1,000 |
| 2025 | 15,800 | 11,200 | 3,000 | 1,600 |
This data shows the notable growth of dual-fuel vehicle production and increased market demand.
Dual fuel technology refers to engines that operate on two different fuels simultaneously, typically combining a primary fuel such as diesel with an alternative fuel like natural gas. This technology leverages the benefits of both fuels under various operating conditions, optimising performance, efficiency, and emissions. Unlike engines that switch between two distinct fuels, dual fuel systems combust both fuels at the same time.To reduce environmental pollution and support consumers, the Ministry of Industry made dual-fuel vehicle production mandatory. This decision helps reduce fuel costs, extend engine life, and protect the environment.