TEHRAN, Dec 8: With fuel consumption up and the government unwilling to run the risk of cutting its hefty subsidies at the forecourt, Iran is facing the prospect of serious petrol shortages in the coming months.

In recent weeks, several provincial cities — notably Karaj and Qazvin to the west of Tehran — have seen petrol pumps run dry and motorists experiencing waits of several hours in order to fill up.

Iran may be OPEC’s number two exporter, but its skyrocketing local consumption as well as the smuggling of subsidised fuel across to Afghanistan and Pakistan is rapidly eating away at local supplies.

Recent official figures put petrol consumption at 57m litres per day, a 13pc increase on last year. The Islamic republic’s refineries, however, can only put out 38.5m litres a day, meaning the remainder is imported at an annual cost of $1.5bn.—AFP