Business | Oil & Gas
Iran sees fuel imports at $3.2b next year
Iran's government is predicting it will need about $3.2 billion for gasoline and petroleum imports in the budget for the Iranian year that starts in March, according to an Iranian media report published on Thursday.
- Reuters
- Published: 00:04 January 25, 2008
Tehran: Iran's government is predicting it will need about $3.2 billion for gasoline and petroleum imports in the budget for the Iranian year that starts in March, according to an Iranian media report published on Thursday.
The report by the official IRNA news agency did not give a comparison, but a senior official suggested in October imports would decline at least 20 per cent during the current Iranian year to about $4 billion worth of gasoline.
The world's fourth-largest oil producer lacks refining capacity and must therefore import large amounts of fuel, which it then sells at heavily subsidised prices. In a bid to curb soaring consumption, it introduced rationing in June.
The scheme, which sparked anger among Iranians when it was introduced, has cut average daily consumption by 22 per cent to 59 million litres compared with the same period last year, the state oil refining and distribution firm said last month.
The monthly quota for private motorists was raised by 20 per cent to 120 litres on December 22.
IRNA quoted Deputy Oil Minister Mohammad-Reza Nematzadeh as saying 30 trillion rials (about $3.2 billion) had been set aside for gasoline and petroleum imports in the government's budget proposal for the year that starts on March 21.
The IRNA report was published in the Iran News daily. The government presented its budget proposal on January 7.
Treasury burden
All gasoline in Iran - whether produced locally or imported - is sold at the heavily subsidised price of 1,000 rials (about 11 US cents) a litre. This has burdened state coffers.
Importing gasoline is also a sensitive issue when Iran is facing Western pressure over its disputed nuclear programme.
India has been among Iran's main suppliers, but company sources this month said Indian refiner Reliance quit selling fuel to Iran last year after French banks BNP Paribas and Calyon stopped offering credit on the deals.
The move by the banks was a sign that the US-led campaign to isolate Tehran over its nuclear programme is making it more difficult to do business with the Islamic Republic.
Washington and other Western powers fear Iran's nuclear activities are aimed at building nuclear weapons.
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