In a significant development during the review of the 2024 budget bill, the representatives of the Islamic Consultative Assembly of Iran have identified the sources of the “Energy Consumption Optimization” account. The Islamic Republic of Iran has mandated the deposit of specific percentages of proceeds from crude oil exports, gas condensates, net gas exports, and profits of subsidiaries of the Ministry of Petroleum and Ministry of Energy into the “Energy Consumption Optimization” account on a monthly basis.
According to the new regulations, one percent of the proceeds from crude oil exports, gas condensates, and net gas exports, along with five percent of the profits of the subsidiaries of the Ministry of Petroleum and Ministry of Energy, will be allocated to the account. Additionally, ten percent of the proceeds from the sale of propane and butane (liquefied gas) and gas liquids of the subsidiaries of the Ministry of Petroleum will also be deposited into the account on a monthly basis.
Moreover, the Ministry of Petroleum is now required to pay the equivalent of five thousand (5,000) rials for each cubic meter of flared gas from its relevant domestic sources by its relevant subsidiaries into the energy consumption optimization account on a monthly basis.
This move is aimed at bolstering efforts to optimize energy consumption and promote sustainability in the country. The identified funding sources are expected to play a crucial role in supporting initiatives geared towards energy efficiency and conservation.
