Iran Economy NewsIran stops making gasoline in petrochemical plants

Iran stops making gasoline in petrochemical plants

-

Bloomberg: Iran stopped making gasoline at petrochemical plants after the government’s reduction in fuel subsidies last month caused prices to quadruple and consumption to fall, an official at Iran’s National Petrochemical Co. said.

Bloomberg

By Ladane Nasseri

Iran stopped making gasoline at petrochemical plants after the government’s reduction in fuel subsidies last month caused prices to quadruple and consumption to fall, an official at Iran’s National Petrochemical Co. said.

Iran produced gasoline at six petrochemical facilities under an emergency plan to help counter U.S. sanctions on fuel supplies, the official said in a telephone interview in Tehran, declining to be named because he is not authorized to speak to the media. The country halted the production on Jan. 21, the official said.

The United Nations has imposed four rounds of economic sanctions on Iran because it refuses to curtail its nuclear energy program, which the U.S. and European Union believe conceals an effort to develop weapons. The Iranian government maintains it wants nuclear energy solely for civilian purposes such as generating power.

The U.S. tightened its own sanctions against Iran on July 1 to target foreign suppliers of gasoline. The Gulf nation had previously relied on imports for about 40 percent of its gasoline needs, due to a shortage of refining capacity. The government responded to the American restrictions by producing gasoline in chemical plants.

Over the past five months, Iran produced 17 million liters (4.5 million gallons) of gasoline a day at the petrochemical complexes, the state-run news agency Mehr reported on Jan. 22.

Reserves Peaked

Oil Minister Masoud Mir-Kazemi said in a Jan. 16 news conference that Iran’s gasoline reserves had “reached a peak.” He noted that demand for gasoline had eased after the government cut fuel subsidies on Dec. 19. This decline, together with the expected completion of refinery projects in coming months, meant the country would no longer have to make gasoline in petrochemical plants as a stop-gap solution.

Iran’s gasoline consumption stood at about 61 million liters before the government raised fuel prices. It has dropped since then to as low as 53 million liters, Mir-Kazemi told reporters at the Jan. 16 conference in Tehran. He didn’t specify a timeframe for the consumption figures.

Iranians now pay 4,000 rials (40 cents) a liter of gasoline for up to 50 liters a month, and 7,000 rials a liter for larger quantities. Until fuel subsidies were cut, people paid a subsidized price of 1,000 rials a liter for a monthly maximum of 60 liters.

Iranian officials say the success of the emergency program for manufacturing gasoline shows that the country is self- reliant and can thwart “enemies’ plots.”

Local media reports late last year linked an increase in air pollution in the capital to the country’s hasty production of lower-quality gasoline. Mir-Kazemi rejected the claim, saying it had been fabricated by foreign news organizations in response to the failure of Iran’s adversaries to pressure it with the gasoline embargo.

Latest news

Iran Regime’s Biological Weapon: The Coronavirus

The coronavirus situation in Iran is a long time out of control and the regime not only does not...

Iran Regime’s Solution To Prevent the Expansion of Protests: National Internet

Statements by Ahmad Khatami, a member of the Iranian regime’s Assembly of Experts on cyberspace and the new government's...

Why the Iranian Economy Is in Tatters

Iranian Foreign Affairs Commentator and research analyst Cyrus Yaqubi have written an op-ed about the Iranian economy, where he...

Raisi’s Execution Tactics Exposed

Ebrahim Raisi will become president of Iran in just over a week, even though (or perhaps, because) his resume...

Khuzestan Water Shortages Protests

The Khuzestan protests over water shortages entered their 12th consecutive day on Monday, with demonstrations spreading to other cities...

Iran’s Failed Economic Policies Lead to Loss of Food Security

In the field of economics, there are two types of challenges. First, urgent issues, and second, long-term problems. In...

Must read

U.S. blacklists firms for evading Iran oil sale sanctions

Reuters: The United States has blacklisted two companies it...

Iran upholds death sentence against Kurd

AP: Iran's Supreme Court has upheld a death sentence...

You might also likeRELATED
Recommended to you