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Scrappage scheme cuts daily gasoline consumption in Iran by 3.4m liters

Business Materials 3 February 2012 17:53 (UTC +04:00)

Azerbaijan, Baku, Feb. 3 / Trend F.Milad/

Car scrappage plans have reduced gasoline consumption in Iran by around 3.4 million liters per day, official in the Fuel and Transportation Management Organization Amir-Reza Rajabi stated.

Amir-Reza Rajabi told Mehr news agency that some 1.15 million cars have been scrapped since 2005. Since the beginning of the current calendar year (March 21, 2011), some 200,000 vehicles have been scrapped, he added.

Gasoline consumption in Iran stood at around 18.2 billion liters in the first ten months of the current calendar year, started on March 21, 2011, showing 833 million liters decline compared to the figure for the same period of last year, Shana news agency reported.

The average daily consumption of gasoline was nearly 57.8 million liters during the 10-month period, down 2.6 million liters thanks to the implementation of the Subsidy Reform Plan.

The plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years.

Managing Director of the National Iranian Oil Refining and Distribution Company Alireza Zeighami said that Iran's gasoline production will rise next year by 18 million liters, or about 118,000 barrels, per day.

The output is expected to increase after completing development projects at seven refineries, Zeighami said.

Iran's current gasoline output is about 60 million liters a day, while domestic consumption is some 59 million liters.

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