Tehran (Reuters) – Iran, the No. 2 OPEC crude producer, will introduce gasoline rationing for motorists from Wednesday, state television reported, in a bid to rein in fuel imports amid concerns over possible harsher U.N. sanctions.
Despite its huge energy reserves, Iran lacks refining capacity and must import about 40 percent of its gasoline, a sensitive issue when world powers have threatened new penalties in a row with Tehran over its nuclear programme.
Imports also are a big burden on state coffers because all fuel, whether imported or domestically produced, is sold at heavily subsidised prices. Even after this year’s 25 percent price hike, fuel still sells at just 1,000 rials (11 U.S. cents) a litre, some of the cheapest in the world.
"From midnight tonight, gasoline will be rationed," state TV said late on Tuesday, quoting an Oil Ministry statement.
The announcement surprised many drivers, prompting a race to fuel stations to beat the deadline. Lines of cars stretched along main roads and down side alleys.
"I have no fuel left in my car. But what can I do?" said Javad Shahedpour, stuck in a queue hundreds of metres (yards) from the pumps of one Tehran gasoline station.
Some Iranians — long used to cheap, abundant fuel — walked away from pumps lugging jerry cans of gasoline.
Even before rationing started, there were reports of scuffles at fuel stations as frustrated drivers stocked up.
Oil traders, who have watched the rationing debate closely, said ahead of the news they saw no sign Iran would cut imports even if rationing went ahead. Iran consumes 75 million or more litres a day, a figure that has been rising at 10 percent a year, pushing up import needs.
Parliament and government have debated whether any rationing plan should allow drivers to buy extra fuel at market prices. Tuesday’s announcement made no mention of that.
