Iran saves $8.5b by rationing gasoline

TEHRAN, May 26 (MNA) –Rationing gasoline has saved over $8.5 billion of Iran’s foreign exchange during the past 22 months, said the deputy oil minister here on Tuesday.

Noureddin Shahnazizadeh put the country’s current gasoline consumption at 64 million liters per day, pointing out that a daily 22-million-litre decrease is the consequence of implementing the rationing scheme.

 

Gasoline rationing in Iran initiated in June 2007 in order to reduce gasoline consumption.

 

The Iranian government officials believe that rationing is essential to curb rising consumption and help reduce reliance on expensive gasoline imports.

 

Before running the scheme, the country imported 35 million liters of gasoline per day to meet the demand.

 

Iran is the world’s fourth-largest exporter of crude oil but due to the lavish consumption of heavily subsidized fuel by Iranian drivers, the country cannot meet the domestic gasoline needs, and is forced to import large amounts which it then sells very cheaply at the pump, burdening the budget.

 

NK/MRK

END

MNA

News Code 33972

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