Petrol-hungry Iran still eyeing rationing
September 16, 2006
Tehran - Major crude producer Iran is still aiming to enforce petrol rationing to curb crippling domestic fuel consumption, as long as it wins parliamentary approval, its oil minister said Saturday.
"If the parliament approves, the current situation will continue for the next few months and then rationing will be implemented," the minister, Kazem Vaziri Hamaneh, said on state-run television.
Vaziri Hamaneh did not say when a bill on rationing would be submitted to parliament.
The minister had announced in June that Iran would stop importing petrol and introduce petrol rationing from September 23. However he later said imports would continue as MPs argued the move was not feasible.
Iran is the OPEC oil cartel's second largest producer, but a lack of refineries means it still has to import 30 million liters of petrol a day to meet the rising demands for heavily subsidised petrol.
Petrol is sold at the pumps for a mere 800 rials per liter (9 US cents) -- 2.5 times cheaper than a liter of mineral water.
The government is now seeking approval for parliament for an additional 3.5-billion-dollar budget for petrol imports for the remaining Iranian year to March to cover a daily consumption demand of 70 million liters.
Deputy Oil Minister Mohammad Reza Nematzadeh has said the government would finally propose to parliament by late September a draft bill that includes raising prices and rationing to curb petrol imports.
The parliament approved an annual $2.5 billion budget in February for petrol imports but this is expected to run out by September 23 due to rising oil prices, increased demand and cross-border smuggling of millions of refined products. – AFP
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