Official denies claims that Iranian petrol consumption exceeds production

Oil&Gas Materials 3 October 2012 16:16 (UTC +04:00)

Azerbaijan, Baku, Oct. 3/ Trend M. Moezzi

A deputy oil minister has denied claims that Iran's petrol consumption outstrips its production, the Iranian Students' News Agency (ISNA) reported.

Alireza Zeyghami predicted a drop in the demand for petrol in the coming days and said projects to expand refineries' production capacity were making good progress.

The official said projects to boost production at the Imam Khomeini Shazand, Arak and Lavan refineries will soon become operational while petrol production plans for the Tabriz, Esfahan and Bandar Abbas refineries will be finished by the end of this solar year (ends on March 19) and the first half of next year.

A report published by Mehr news agency today said the National Iranian Oil Products Distribution Company (NIOPDC) has been unable to carry out 10 new plans designed to boost and optimize petrol production.

Those delays, coupled with a greater demand for petrol, have meant consumption has outstripped production, said the report.

Zeyghami, who is the NIOPDC's managing director, said the demand for petrol has seen a sharp drop from 73 million liters a day on average in 2006 when the government cut its petrol subsidies to 60 million liters a day last year.

The current average of petrol used daily is 63 to 64 million liters, but one million cars a year have been added to Iran's roads since 2006 said the official.