IEA says Iran gasoline rationing is a clever move

LONDON (Reuters) – Iran’s plans to ration gasoline and increase the price should help curb imports and raise fuel efficiency but may provoke considerable domestic opposition, the International Energy Agency (IEA) said on Friday.

Iran imports 40 percent of its gasoline needs, making the Islamic republic vulnerable to trade sanctions in its dispute with the
United Nations over its nuclear programme.


The government has put forward plans to ration gasoline and raise the price, currently among the lowest in the world, from May 22. Iran is the world’s fourth largest crude exporter but a lack of refining capacity has made it dependent on gasoline imports.

“The new rationing plan should be seen as a clever move towards gradually adopting market prices, encouraging greater fuel efficiency and curbing demand,” the IEA, which advises 26 industrialized nations, said in its monthly Oil Market Report.

“However, the change will entail considerable social and political hurdles, which will need to be overcome if it is to be a success.”

Reuters