6 May 2007 - 11:38
  • News Code: 103928
Gasoline Consumption in Iran on the Rise

TEHRAN – Gasoline consumption in Iran rose by 12.8 million liters during the weeklong period of April 28-May 4 when compared to the figure in its preceding week, hitting 552.7 million liters.

The figure showed the country used 79 million liters per day on average during the week.

According to the official statistics of National Iranian Oil Products Distribution Co. (NIOPDC), 539.9 million liters was consumed – 77.1 million liters daily on average – between April 21 and April 27.

The country used 572.6 million liters of gas oil from April 28 to May 4, indicating an average 81.8 million liter rise per day and an over 42.2 million liter growth in a week.

Last March, the Majlis (Iran’s parliament) approved that the government could sell rationed gasoline at 1,000 rials (less than 11 cents) per liter through smart cards. The lawmakers also authorized the cabinet to determine the price of gasoline sold in excess of the rationed quota.

Chairman of Majlis Energy Committee Kamal Daneshyar told PIN the rationing would help reduce the $3.5 billion annual subsidies, drop in consumption due to the quota system, and an increase in government revenues.

“The government puts the decisions of the Majlis into action as lawmakers have the final say,” said Minister of Petroleum Seyed Kazem Vaziri-Hamaneh, adding, “We are ready to ration gasoline at due time, May 22.”

The government is obliged to sell the domestically produced gasoline and imported gasoline at the subsidy level of 22.25 trillion rials (2.4 billion dollars) on rationing scheme with priority given to gasoline smart card at the price of 1,000 rials per liter.

A member of Planning and Budget Committee of Majlis is convinced that most of lawmakers vote for the recent approval on gasoline and will reject other proposals.

Morteza Tamaddon told PIN the cabinet was determined to submit a bill to Majlis in a bid to make a change in gasoline price, but the government abandoned the idea after exchanging views with parliamentarians.

Representing Shahr-e Kord in Majlis, Tamaddon said the gasoline file had been closed and the MPs opposing the approval had better offer no proposals two weeks before the enforcement of the law.

The government spent almost four billion dollars on gasoline imports during March 2006-January 2007, recording a significant rise compared to the same period the in its preceding year.

A report issued by the Ministry of Economic Affairs and Finance indicated that petrol import costs rose by 187 percent in the 10-month period, when 35.8 trillion rials ($3.9 billion) were spent on gasoline imports, up from 12.4 trillion rials spent during the same period the year before.






News Code 103928

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