Iran General NewsIran needs $6.5 bln more for fuel imports-report

Iran needs $6.5 bln more for fuel imports-report


ImageReuters: Iran needs an additional $6.5 billion to help pay for imports of gasoline and diesel fuel during the 2009-10 budget year, a senior Oil Ministry official said in remarks published on Tuesday. ImageTEHRAN, Oct 6 (Reuters) – Iran needs an additional $6.5 billion to help pay for imports of gasoline and diesel fuel during the 2009-10 budget year, a senior Oil Ministry official said in remarks published on Tuesday.

Deputy Oil Minister in charge of planning, Ebrahim Radafzun, said the ministry was preparing a draft supplementary budget bill to be sent to the government during the current week, business daily Donya Eqtesad reported.

It said the supplementary budget bill — which it described as the biggest ever in Iran — would then be submitted to parliament.

Iran is the world's fifth-largest crude exporter but lacks sufficient refining capacity to meet its domestic gasoline needs, forcing Tehran to import large volumes of the transport fuel which it then sells at heavily subsidised prices locally.

"The $6.5 billion supplementary budget bill is intended to meet the shortage in the budget for the import of gasoline and diesel fuel for the entire current (Iranian) year," Radafzun was quoted as saying.

The daily did not give any figures for the total budget amount needed to cover imports of gasoline and diesel fuel during the Iranian budget year that ends next March.

More such imports could increase Tehran's vulnerability to potential U.S. sanctions to target fuel suppliers to the Islamic Republic over its disputed nuclear programme.

Iranian officials have repeatedly shrugged off the threat of any such sanctions measures.

"Because we were guessing that the United States would sanction the sale of gasoline to Iran we placed precautionary measures on our agenda," said a member of parliament's energy commission, Jahanbakhsh Amini.

"One of the measures we have taken is that we have entered into gasoline purchase contracts with exporting countries," he was quoted as saying by the Andishe-no daily.

Domestic gasoline consumption in Iran has risen about six percent per year, despite two years of rationing designed to cap consumption levels, a top official from the National Iranian Oil Company said in May.

Around 700,000 new cars are coming onto Iran's roads each year. Fuel demand in many countries are falling because of the global economic slowdown, but cheap gasoline means there is little incentive for Iranians to cut back on driving. (Reporting by Hashem Kalantari; writing by Fredrik Dahl; editing by William Hardy)

Latest news

Iran’s Regime Inches Toward Nuclear Weapons

Iran’s regime is once again at the center of a dangerous escalation of the proliferation of nuclear weapons. A...

US Congress Expresses Support for Iranian People’s Quest for a Democratic, Secular Republic

Several bipartisan members of the U.S. House of Representatives have presented a resolution (H. RES. 100) supporting the Iranian...

Wave Of Poisoning Attacks Against Schools Leave Hundreds Sick

Iran has been shaken for three months by serial poisoning attacks against all-girls schools, which has left more than...

Iranian Security Forces Beat Baluch Doctor To Death

On Thursday, February 23, activists in Sistan and Baluchestan provinces reported the news of the death of Dr. Ebrahim...

World Powers Should Hear The Voice Of Iranians, Not Dictators And Their Remnants

Iran’s nationwide uprising continues despite its ups and down. The clerical system’s demise no longer seems a dream but...

The Rial Continues To Sink, Hits Record 500,000 Marks Against The Dollar

The US dollar increased in price by more than 11 percent in February and grew to more than 500,000...

Must read

Iran rejects terms of U.N. resolution on atomic work

Reuters: The people of Iran are entitled to produce...

Fatal fire in Iran mosque claims 35 lives

Iran Focus: Tehran, Feb. 14 – At least 35...

You might also likeRELATED
Recommended to you