Iran builds petrol stock to offset possible sanctions

Iran has increased its stockpile of petrol by over one billion litres and plans to boost domestic production to offset possible fuel sanctions, an oil official said today.

Last Updated: Apr 27, 2010, 14:58 PM IST

Tehran: Iran has increased its stockpile
of petrol by over one billion litres and plans to boost
domestic production to offset possible fuel sanctions, an oil
official said today.

"At the moment the volume of Iran`s strategic petrol
supplies has increased by over a billion litres," Nooreddin
Shahnazi-Zadeh, the head of National Iranian Oil Refining and
Distribution Company told Mehr news agency without
specifying the total stockpile.

Shahnazi-Zadeh dismissed the threat of sanctions,
saying "it is impossible to impose such limitations in the
current situation."

Oil-rich Iran, OPEC`s second largest oil exporter, is
dependent on petrol imports to meet over one third of its
domestic consumption, which is about 65 million litres a day,
due to shortage of refining capacity.

Shahnazi-Zadeh said the output of Iranian refineries
was about 44.6 million litres a day which would increase to
45.6 in the current Iranian year to March 2011.

Western countries led by Washington have stepped up
global efforts to secure a fourth round of UN sanctions
against Iran for pursuing its sensitive uranium enrichment
programme.

Among measures mentioned by top Western officials are
restrictions on fuel to the Islamic republic, which announced
last November it would launch an emergency petrol production
plan in a bid to dodge such punitive measures.

PTI