Kuwait Times

Published Date: May 18, 2008

TEHRAN: Iran expects to import about 20 million liters of gasoline per day during the 2008-9 year, less than half the amount it would have imported had it not launched rationing last June, an energy official said yesterday. But the figure was still 5 million liters higher than an import estimate given by another oil official in February, before Iran allowed the sale of extra, higher-priced gasoline outside the rationing system launched in June last year.

We predict to have about 20 million liters of imports this year on average," deputy Oil Minister Mohammad Reza Nematzadeh told reporters, referring to the Iranian year that ends in March 2009. "And if the rationing had not taken place that number would have been over 40 million liters and with current prices that would have been more than $4 billion for the year," he said on the sidelines of a petrochemical conference.

Iran, the world's fourth largest oil producer, launched gasoline rationing last June to curb consumption which had risen well beyond the country's ability to refine crude, forcing the government to rely on expensive imports. All fuel had been sold at the heavily subsidized price of 1,000 rials (about 11 US cents) a liter. But the government revised the system starting from March 20 to let drivers buy fuel above their 120 liter a month quota at 4,000 rials a liter.

Until that revision, drivers could not officially buy extra fuel, although some drivers turned to an unofficial market. Nematzadeh last month said drivers had used more fuel than expected since the system was revised in mid-March. In February, before the rationing system was changed, another energy official said Iran was importing 15 million liters a day and did not expect import volumes to change in the next 12 months. -- Reuters