Energy

Restrictions on Subsidized Gasoline Quotas in Iran

As of April 20, fuel cards will not be recharged unless car owners use their subsidized fuel and cards hold less than 360 liters of gasoline

Fuel cards that hold 360 liters of gasoline will not be charged from April, head of the Planning Department of the National Iranian Oil Refining and Distribution Company said.

“Motorists can save maximum 360 liters of gasoline in their cards for six months and after that their card will not be charged unless they use the gasoline,” Shahram Rezaie was quoted as saying by ISNA.

As of April 20, the cards will not be recharged (monthly 60-liter quota) unless car owners use their subsidized fuel and cards hold less than 360 liters of gasoline, he noted.

In November, the National Iranian Oil Products Distribution Company announced that gasoline was rationed and that gas at the pumps wound cost 50% more.

Private car owners are eligible for 60 liters of subsidized gasoline every month with a fuel card at 15,000 rials (10 cents) per liter. Additional purchases (maximum 250 liters a month) cost 30,000 rials (23 cents) per liter.

“Fuel cards have been charged five times (300 liters) since November and all vehicle owners will receive their quota on March (60 liters). The restriction will be applied from April,” he noted.

There are plans to extend the 6-month period but no decision has been made yet.

According to the official, motorists used an average of 72 million liters per day of gasoline between Feb. 20, and March 7. 

This volume (72 million liters/d) is expected to decline further as people have been advised to avoid travel due to the coronavirus outbreak across the country, especially in the northern regions.

Gasoline consumption in January 2020 was 85 million liters/d.

Since Feb. 20 when COVID-19 was detected in Qom, Tehran and Rasht, many families self-quarantined at home to be safe from the deadly infection or to see if they develop symptoms. This has resulted in declining gas sales while almost all retailers suffer from the economic slowdown due to the contagious disease.

On Tuesday health officials in Tehran confirmed 8,000 cases of infection with the new coronavirus, with 300 reported dead.

Local news outlets announced last week that as per the parliament's Integrated Commission’s approval, car owners would be entitled to 120 liters of extra subsidized gasoline for the Norouz holiday (the Persian New Year) season that starts on March 20. 

Nonetheless, Ali Rabiei, the government spokesman, said on Tuesday that the plan to charge fuel cards for the Norouz holiday has been postponed. He did not provide details.