Official: Petrol rationing saves Iran $38 billion

Iran Materials 30 December 2011 16:48 (UTC +04:00)

Azerbaijan, Baku, Dec. 30 / Trend F.Milad/

The gasoline supply rationing has prevented Iran from importing 65 billion liters of the product since 2008, by saving about $38 billion, the National Iranian Oil Production and Distribution Company official Ali Farahani said.

In 2007, the country's daily gasoline consumption stood at 60 million liters. In 2008, the figure reached 67 million liters. If the rationing plan had not been implemented, the figure would surge to 89 million liters per day, Ali Farahani told ISNA news agency.

The petrol rationing along with the Subsidy Reform Plan, which was launched in December last year, curbed the gasoline consumption at 60.4 million liters per day, saving some $38 billion in the country, he said.

Iran may begin exporting gasoline next calendar year (to start on March 21, 2012) thanks to the cut in domestic gasoline consumption after implementing the Subsidy Reform Plan, oil minister Rostam Qasemi was quoted by Fars news agency as saying.

Referring to the Subsidy Reform Plan and its effects in reducing gasoline consumption, he explained that if the gasoline consumption had continued according to the patterns before the reform plan, it would have surged to 120 million liters per day annually. But, the figure is currently around 60 million liters per day.

The consumption of four highly-consumed fuels in Iran significantly declined the reform plan was implemented, the managing director of the National Iranian Oil Products Distribution Company said.

The subsidy reform plan allows the Iranian government to gradually reduce subsidies on fuel, electricity, and certain goods over the course of five years.