Iran says fuel consumption down 27%

Iran says fuel consumption down 27%
30 July 2007
by Reuters

Iran's daily gasoline consumption has dropped by about 20 million litres since the No. 2 OPEC oil producer started to ration motor fuel in June, Oil Minister Kazem Vaziri-Hamaneh was quoted as saying on Sunday.

He did not specify how much fuel Iranian drivers were now using but officials had said Iran consumed 75 million litres a day, 40 % of which was imported, before rationing was introduced on June 27.

"During this time 20 million litres of gasoline was saved per day on average," state television quoted Vaziri-Hamaneh as saying.

The move last month to start rationing gasoline sparked protests by motorists used to cheap, abundant fuel. It aimed to curb consumption in the Organization of the Petroleum Exporting Countries member, which does not have enough refining capacity to meet domestic gasoline needs.

Some Iranian officials had worried costly fuel imports were making the country increasingly vulnerable when world powers are considering ratcheting up United Nations sanctions against Iran over its atomic plans.

Iranian oil official Hojjatollah Ghanimifard said on July 17 his country would cut its gasoline imports by at least 14 % from August.

Private drivers receive 100 litres of fuel a month at the heavily subsidised price of 1,000 rials (11 U.S. cents). Many complain it is not enough and have urged the government to offer more, even if they have to pay a higher price.

But the government fears this would send inflation, now running at about 16 % year-on-year, even higher.

The United Nations has imposed two rounds of sanctions over Tehran's failure to halt disputed nuclear work the West says is aimed at building atomic bombs. Iran dismisses this charge, saying it only wants to generate electricity. A third set of sanctions is now in preparation.

The United States, leading efforts to isolate Iran, has described Tehran's gasoline imports as leverage in the row.