Iran Eases Gas Ration

A00217913.jpgTEHRAN (FNA)- Iran announced Monday it would ease gas rationing for the next month, allowing people to buy gasoline above the imposed limit during a major holiday, but at a higher price.

The government introduced rationing in June, trying to reduce large subsidies it spends on gas..

The rationing rules allow drivers to buy 31 gallons a month at a highly subsidized price of 42 cents a gallon.

But for the Iranian New Year’s holiday, Nowruz, they will be allowed to buy above that level at a price of $1.68 per gallon, Oil Minister Gholam Hossein Nozari said.

Many Iranians take family trips during Nowruz, during which children are out of school for several weeks.

Iran does not have enough refineries, so it must import more than 50 percent of the gasoline its people use. The government is hoping to reduce the $10 billion it spends annually to import fuel and sell it at the subsidized price.

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