TEHRAN (Iran News) –The Secretary of Iranian Oil, Gas and Petrochemical Products Exporters’ Union (OPEX) Hamid Hosseini says despite reducing the gasoline rationing quota for cars, the consumption has not decreased yet and Iran may once again become importer of gasoline and gas oil.
Speaking to ILNA, Hosseini touched upon the importance of cutting the free rate gasoline quota from 250 liters to 150 liters and said that due to high potentials for smuggling gasoline, it was a correct decision because 60 liters of subsidized gasoline plus 150 liters of free rate gasoline is enough for a normal household.
He went on to say that gasoline production has declined by 11% in Persian Gulf Star Refinery and the country needs to construct a new refinery to compensate the shortage and it will take 3 to 4 years or the country will have to import gasoline otherwise the country should move towards producing gasoline in petrochemical companies or control consumption and demand and currently the best and safest is to control the consumption.
Hosseini admitted that currently the country is unable to sell gasoline at its real price in the country because of its bitter experiences in the past for hiking the prices, adding that due to big difference between gasoline prices in Iran with neighboring countries, it is smuggled and the best solution for controlling the market is rationing quota of cars.
He noted that if the government does not allocate rationing quota for 2500cc cars or more, a new price will be imposed in the market and owners of luxury cars will have to buy gasoline with higher prices and the government will at least move to hike the price of super gasoline or unsubsidized its price.
Hosseini reiterated that reducing the rationing quota does not mean necessarily reduction in consumption and gasoline with low price is apt to smuggling.
He admitted that due to decline in production and rise in consumption, there is possibility for the country to resort to imports, adding that there are some solutions to avoid imports and one is to optimize the fuel consumption especially in vehicles through changing or repairing engines of cars. He added that the second solution is to collect old and dilapidated cars which overconsume gasoline and cause pollution.
Hosseini stated that the other solution is smartizing the fuel consumption to monitor the amount of consumed fuel by each vehicle and the last one is to construct refinery and increase the production capacity.