Iran: Fuel Imports Increase as Downstream Products Yet to Come on Stream
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Tuesday, 15 November 2011 |
Fuel demand in the Islamic Republic of Iran remains strong despite economic sanctions and price reform, as the country registered a 21% month-on-month increase in refined fuel imports for October, according to Reuters shipping data. The country imported 63,279 bpd in October, up from September’s figure of 51,986 bpd.
Imports of gasoline have fallen substantially from their 2007 peak, however, dropping from 204,000 bdp in June of that year. The long-term decrease is set to continue as the country’s Lavan refinery nears completion of an improvement project. Mohammad-Ali Dadvar, Managing Director of the facility, told the Tehran Times that an upgrade programme for Lavan was 80% complete. He added that the improvements would trebble gasoline production capacity to 24,000 bpd over the next Iranian calendar year, beginning on March 21.
In a bid to control demand costing $100bn a year in subsidies, the Iranian government moved to reform its fuel pricing policy and introduce quotas on subsidised fuel in December 2010. Plans to build eight new refineries and expand existing plants at a total cost of $28bn have also been announced, as the country seeks to limit its dependence on imported fuel.
PetrolWorld 15112011
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