Gov’t to stop gasoline import for next five months: Veep
The government will halt importing gasoline for the five months to March 20 when the current Persian calendar year comes to an end, First Vice President Mohammad Reza Aref said on Thursday.
Aref said the decision followed a policy that persuaded the public to accept higher gasoline prices, IRNA reported.
“The money saved by halting imports would fund subsidies and the government’s electronic food voucher program,” he said.
Meanwhile, an aide to the first vice president said gasoline imports would stop on October 23.
Abbas Pazouki, deputy for communications and information at Aref’s office, also quoted President Masoud Pezeshkian as saying the government had paid between $2 billion and $3 billion on gasoline imports since the start of the current Persian year on March 21. Iran has spent at least $3bn a year on gasoline imports for several years to overcome a domestic shortfall. This year, the government also had to draw on strategic gasoline reserves to meet growing demand.
Iranian refineries crank out about 110 million liters of gasoline a day, against average daily consumption of 135 million liters.
To narrow the gap, the Oil Ministry ordered several petrochemical plants to allocate part of their capacity to gasoline production. The move added 20 million liters to daily output, taking total production to 130 million liters.
In early September, the government raised prices for gasoline bought outside monthly quotas for the second time in less than a year. It also adjusted monthly quotas.
Gasoline is sold at three rates. Each vehicle receives 60 liters a month at 15,000 rials per liter, followed by another 50 liters at 30,000 rials. Additional purchases are unrestricted but cost 100,000 rials per liter.
Drivers must use government-issued fuel cards to fill up at gas stations. Monthly quotas are loaded onto the cards.