Iran plans to soon increase the monthly gasoline quota for private motorists by 20 percent to 120 litres, Oil Minister Gholamhossein Nozari said on Sunday.
The world's fourth-largest crude producer, which lacks refining capacity and imports large amounts of fuel which it then sells at heavily subsidised prices, introduced rationing in June to curb soaring consumption. But many ordinary Iranians complained the allocated quota of 100 litres was not enough. As a result of subsidies, Iran has some of the cheapest gasoline in the world, encouraging demand.
"The gasoline quota will be raised to 120 litres per month from the next Iranian month (which starts on December 22) ... it has almost been finalised," Nozari told reporters at an energy conference in Tehran.
He said the preliminary decision to increase the allocation was taken after a review of the first six months of the rationing scheme, which initially sparked public anger in Tehran and elsewhere but also led to a decline in costly imports.
Other Iranian oil officials said the government may also allow additional gasoline to be sold at unsubsidised prices, which it has previously opposed, saying this could take effect from the Iranian year starting in March 2008.
Iran is one of the world's biggest gasoline importers, weighing on state coffers and also making it potentially vulnerable when world powers are threatening more sanctions over Tehran's disputed atomic plans.
A senior official suggested in October imports would decline at least 20 percent during the current Iranian year, saying Iran was expected to import about $4 billion worth of gasoline. India, the Netherlands, France and the United Arab Emirates are Iran's primary suppliers. Last month, another Iranian official said the country would produce enough gasoline to meet domestic needs by the end of 2009 and could be exporting the fuel by the end of the decade.
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