Gasoline-Import Increase in Iran and Corresponding Control Policies

Document Type : Policy Paper

Author

Energy-Economics Analyst

Abstract

Iran Gasoline imports between years 2012 to 2016 shows an increasing trend after 5 years of decrease. Amount of refinary products was not remarkably increased during the period. Besides, implementation of "Subsidies Reform Act" was stopeed at 2012 and 2013. After that, in spring 2015, rationing of gasoline was terminated after 8 years. Also, increasing rate of CNG substitution was stopped in light-transportation section. These factors together led to a remarkable increase in gasoline imports between 2012 to 2016. Knowing that fuel is a kind of essential goods and remembering that US imposed oil-products sanctions on Iran in summer 2010, it is necessary to control the rise of gasoline imports. As the first step, the amount of domestic production of gasoline should be increased, with the priority of "Persian-Gulf Star" refinary. On the other hand, fuel-conservation policies to control gasolin demand are to be pursued. Besides, CNG share in fuel consumption decomposition should be enhanced. At last, improvement of public transportation can help reducing gasoline demand leading to a reduction in gasoline imports.

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