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Shahanshah Aryameher

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Thursday, July 12, 2007

Iran won't raise fuel quota for drivers Tehran:


Iran will not raise the quota of gasoline for private drivers under rationing introduced last month, the oil minister said, despite grumbling by motorists that they do not get enough.
Oil Minister Kazem Vaziri-Hamaneh also said the government did not want to offer extra fuel at higher prices than the rationed fuel because it would undermine the objective of cutting consumption, the official Irna news agency reported. Iran began rationing fuel last month, sparking protests by motorists used to cheap, abundant fuel. The move aimed to curb consumption in the Opec member, which does not have enough refining capacity to meet domestic gasoline needs. The Islamic state has been importing 40 percent of its fuel needs, costing it $5 billion last year. That is a sensitive issue when world powers are considering ratcheting up UN sanctions against Iran over its nuclear programme. 'We are not able to incresae gasoline quotas for private cars,' IRNA quoted the minister as saying. Other news agencies also carried the comments. Drivers of private cars can buy 100 litres (22 gallons) of fuel a month, which many say is not enough, at the heavily subsidised price of 1,000 rials (11 US cents) a litre. Drivers, who can currently buy their quota up to six months in advance, worry about what will happen if they use up their allocation too quickly and a black market in extra fuel has already emerged.
'Offering (extra) gasoline at a free-market price will stop us from reaching our main goal which was to economise gasoline consumption,' the minister added. Other government officials have said offering extra gasoline at market prices would only fuel inflation, which is already running at 17 per cent. Economists say the black market with higher priced fuel will have the same inflationary impact. They say the government would do better to legalise the market and offer some fuel at higher prices, closer to international levels. Some Iranian politicians have said Iran had to take dramatic action because of mounting international pressure.
The UN has imposed two rounds of sanctions over Tehran's failure to halt work the West says is aimed at building atomic bombs. Iran dismisses this charge, saying it only wants to develop a home-grown nuclear power industry. The US, leading efforts to isolate Iran, has described Tehran's gasoline imports as leverage in the row.Reuters

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