Business | Oil & Gas
Iran seeks funds for fuel imports
Iran's government plans to ask parliament for an extra $7 billion (Dh25.7 billion) budget to cover the growing cost of fuel imports, a newspaper reported on Tuesday, even after the major oil producer began gasoline rationing last year.
- Reuters
- Published: 00:02 October 1, 2008
Tehran: Iran's government plans to ask parliament for an extra $7 billion (Dh25.7 billion) budget to cover the growing cost of fuel imports, a newspaper reported on Tuesday, even after the major oil producer began gasoline rationing last year.
Oil Minister Gulam Hussain Nozari said the funds were needed to import gasoline during the Iranian year that ends on March 20, the Farhang-e-Ashti daily reported.
In February, the Iranian parliament had authorised the oil ministry to import fuel for the equivalent of $3.2 billion in the fiscal year that started on March 21, 2008.
"Nozari said we will need $6.5 to $7 billion for the import of fuel in the second half of the year," Ali Adianirad, spokesman for parliament's energy commission, told lawmakers on Monday.
"The minister said extra budget was needed because of the higher price of gasoline and gas oil in the world market," the newspaper quoted the spokes-man as saying.
Under the rationing scheme, fuel has been sold at the heavily subsidised price of 1,000 rials a litre. The government revised the system, starting from March, to let drivers buy fuel above their 120-litre-a-month quota at 4,000 rials a litre.
Officials had previously said both consumption and imports had gone down after Iran launched the rationing to curb consumption, which had soared well beyond its ability to refine crude.
Refining challenge
Despite being the world's fourth largest oil producer, Iran depends on expensive imports as it lacks the refining capacity to meet domestic demand in full.
Gasoline imports are a sensitive issue for Tehran, which is challenged by the West over its nuclear programme. The United States sees the imports as a potential weakness.
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