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As can be anticipated, there is a continuous increase in the diesel fuel demand worldwide as a consequence of the growth of energy demand in the commercial transport sector.Kalghatgi GT evaluated the demand for diesel fuel in the future and expected an 85% increase in diesel demand by 2040 .These projects have not gained effective control of consumption due to the wide gap between the international diesel price and the domestic price.
Rivlin believes that Iran has artificially boosted demands while subsidizing energy products .
Iran’s gasoline demand function over the period of 1968–2002 was evaluated by Ahmadian et al., and they concluded that the higher gasoline price decreased social welfare .
Total consumption of petroleum products in 2016 was estimated to be more than 70 billion liters, which had an approximate value of 25 billion dollars with a share of 35.5% and 40.6% for gasoline and diesel, respectively.
Gasoline consumption in 2016 had an average of 71 million liters per day with 2% growth compared to the previous year.
Increasing transport demand is an inevitable consequence of economic development.
Meanwhile, a cheap transport service also plays a significant role in the development of a country.During this year, diesel consumption had an average of 81.2 million liters per day with a 19% decrease compared to the previous year.That decrease was due to the delivery of natural gas to power plants and sugar and cement factories, as well as more control over consumption and the prevention of smuggling of this petroleum product in the non-power sector.However, diesel consumption fell by an impressive 19 percent and reached 81.2 million liters per day.The constraints and contributing factors to Iran’s gasoline supply were investigated by Aghaii Tabrizi.He concluded that the major solution to control fuel consumption is planning, organizing, and managing the consumption .Other researchers, such as Rivlin and Stern, examined energy balance in Iran.With the current circumstances which have caused the low price of diesel in Iran, the necessity for a comprehensive evaluation seems more obvious.Some countries took policies to significantly reduce fuel consumption, such as policies in 1994 in the USA which failed .During 2006–2007, this growth imposed 2.2 billion liters of imports, which were equivalent to 7.5% of diesel production in 2007 and cost about 1.2 billion.Therefore, the government implemented fuel rationing in 2007 and a targeted subsidy law in 2010.