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Iran: Parliament considering end to petrol rationing

Tehran, May 18, IRNA - Majlis is studying to supply petrol at floating price and lift the quota for the motor-cars, Head of Majlis Energy Commission Kamal Daneshyar said on Sunday.

He said that the petrol quota for the vehicles will be lifted by the end of the current Iranian year (March 20, 2009).

He told reporters that a debate is underway at the parliamentary commission on energy to lift the rationing enforced since June 22 throughout the country.

The MP said that the plan to allocate quota for each car failed to reach the objective of reducing gasoline consumption.

He argued that the reason behind failure of the plan was the annual addition of one million new cars to the existing seven million cars nationwide.

At the early stages of gasoline rationing, it was reported that the gasoline consumption had reached 15 million liters per day from 35-36 million liters per day before the rationing plan came into effect.

"That was a temporary measure," said the MP adding that the move should continue only for a short time.

He suggested two ways to solve the problem of high rate of gasoline consumption in Iran.

Increasing of gasoline price based on a "step-by-step method upward" and paying subsidies to gasoline by government are two effective ways to curb gasoline consumption nationwide, Daneshyar added.

Based on the present rationing system each private car is allowed to receive 100 liters per month at about 10 cents per liter.

Currently, the petrol price outside the quota is 40 cents.

Under the plan, gasoline is only supplied through smart cards, an initiative taken by President Mahmoud Ahmadinejad to stop lavish fuel consumption.

It was previously suggested that gasoline rationing would help the government save over three billion dollars a year.

... Payvand News - 05/19/08 ... --

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