Emergency plans will help Iran boost gasoline output sharply by early 2012, an official said in comments published on Sunday, after the US congress approved a bill to penalize firms supplying Iran with the fuel. Iran is the world's fifth-largest oil producer but lack of sufficient refining capacity forces it to import up to 40 percent of its gasoline needs – making it potentially vulnerable to punitive measures targeting the trade. Deputy Oil Minister Ali-Reza Zeighami said Sunday daily gasoline production would increase by 17 million liters by the end of the next Iranian year, which runs until March 2012, “through the implementation of emergency plans,” the daily Resalat said. This would amount to almost the same volumes that Iran is now importing. Resalat said Iran currently produces about 43 million liters of gasoline per day. The threat of US sanctions on suppliers to Iran has reduced the pool of companies prepared to sell gasoline to the OPEC member, although Iranian officials say the country faces no problems in buying what it needs. Zeighami, who is also managing director of the National Iranian Oil Refining and Distribution Company, said output would increase by 11 million liters at the Arak refinery, where output now stands at five million liters. “Improved gasoline production plans are being pursued at a number of other refineries in the country at a cost $1.8-2 billion,” he added. Officials have often made such statements in recent months as Iran faces increased international pressure over its nuclear energy program, which the West fears aims to develop nuclear weapons. Tehran says it is only interested in generating electrical power. Officials say the country will become self-sufficient in gasoline production over the next few years as it completes the construction of new refineries and also takes measures to curb consumption by phasing out subsidies. A senior official was quoted as saying last week that Iran is on average importing 18 million litres of gasoline per day. On Thursday last week the US Congress approved new unilateral sanctions aimed at squeezing Iran's energy and banking sectors, which could also hurt companies from other countries doing business with Tehran. The bill penalizes companies supplying Iran with gasoline as well as international banking institutions involved with Iran's Islamic Revolutionary Guards, its nuclear program or what Washington calls its support for terrorist activity.
