Iran plans to cut gas imports, subsidies
By Andrea R. Mihailescu
THE WASHINGTON TIMES
July 3, 2006
Iran, which relies on imports for almost half its refined petroleum products, plans to halt those imports and introduce gasoline rationing later this year, the government announced.
washtimes.com
Vicious Fuel Cycle
Iranian drivers might be under the impression that they always fill up their tanks with domestic fuel, but OPEC's second biggest oil exporter must import a billion dollars worth of gasoline this year owing to waste and smuggling.
"We use 50 million liters of fuel each day, 10 percent more than just a year ago", commented Seyyed Reza Kasaizadeh, planning director for the national refining and distribution company NIORDC, the Persian daily Khorasan reported.
"To meet demand, Iran must now import 22 million liters a day".
iran-daily.com
Should Iran declare an oil embargo, the West could retaliate by cutting gasoline exports to Iran, which Matthee calls one of Iran's ``soft spots.''
Iran buys more than a third of its gasoline from other nations because it has failed to ease subsidies, cut waste and boost refining capacity. ``Iran is rushing to try and limit its dependence on gasoline imports because it knows it makes it vulnerable,'' Matthee said in an interview.
Gasoline Rationing
Earlier this year, Iran's parliament cut the budget for gasoline imports by 40 percent to $2.5 billion in a bid to limit consumption. The plan, due to start in September, has already been postponed until March -- officially because of delays with issuing ration cards, and unofficially because it is bound to create ``popular discontent,'' according to Control Risks.
Under the plan, Iranian drivers would be limited to as little as three liters (four-fifths of a gallon) a day, enough to drive only 11 miles (18 kilometers) with a Paykan car, a model owned by four in 10 Iranians.
Iran spent $25 billion on subsidies last year, or more than half the $44.6 billion it collected through crude oil exports.
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