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Gasoline Rationing Plan Is Crucial, But Not Enough

Although the full demand for gasoline is met by domestic refineries now, if production does not meet domestic demand in the near future the government will have to import costly fuel like in the previous years
Gasoline Rationing Plan Is Crucial, But Not Enough
Gasoline Rationing Plan Is Crucial, But Not Enough

Many say that in the current economic conditions resuming the gasoline rationing system to better manage (curb) fuel consumption is inevitable, but may not help much in preventing smuggling.
The government sells gasoline much lower than its cost price and pays a huge amount of subsidy -- $35 billion per annum to consumers.
Consumption of the fossil fuel is prohibitively high and further increase means added pressure on the government to produce more gasoline.
According to data from the National Iranian Oil Products Distribution Company, gasoline consumption in the first month of the new calendar year (March 21-April 20) indicates an increase of 4.7% compared to the corresponding period last year.

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