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Middle East:Iran's Gasoline use down, production

Middle East:Iran's Gasoline use down, production

Write: Tehya [2011-05-20]
Gasoline consumption in the Islamic republic is on the decline as production of fuel reserves reaches new highs, an Iranian energy director said.

The National Iranian Oil Products Division Co. said gasoline usage during the first week of November was down 380,000 gallons compared with the previous week.

Total gasoline production in Iran was at 26 million gallons, up 3.6 million gallons compared with the previous week, the Iranian Oil Ministry's Petroenergy Information Network reports.

Iran aims to curb domestic gasoline consumption as the country struggles to cope with economic sanctions imposed as punishment for a controversial nuclear program.

Alireza Zeighami, a director at one of Iran's oil refining companies, told the energy reporting network that upgrades at national refineries could add another 2.6 million gallons of gasoline to Iran's production capacity by the next Iranian year, which begins in March.

Iran switched some refineries from petrochemical production to gasoline production to cope with economic sanctions. Observers said, however, that it costs Iran exponentially more to make gasoline that way, noting the current solution may only be temporary.