TEHRAN (MNA) - Majlis Energy Committee chairman Kamal Daneshyar said here on Sunday that gasoline would most likely not be rationed in autumn since the required facilities have not been prepared yet.

The development of the public transportation system and the conversion of vehicles from gasoline to natural gas fuel are some of the required conditions, the lawmaker told reporters on the sidelines of an open session of parliament.

“In order to develop the public transportation system, 6,500 buses, 50,000 taxis, and 20,000 mini buses are scheduled to be added to it,” he added.

The MP explained that Majlis deputies have different views on gasoline rationing.

Some MPs believe the necessary measures have not been taken yet to begin rationing in autumn, while others are insisting on beginning rationing as soon as possible through distributing smart cards, he said.

Oil minister sees daily petrol ration under 5 liters

Iran could ration motorists to less than five liters of gasoline per day from September but will keep prices heavily subsidized to ward off inflation, Reuters quoted Iran's Oil Minister Kazem Vaziri-Hamaneh as saying on Sunday.

Vaziri-Hamaneh said on Friday Iran would have to ration gasoline from Sept. 23 after parliament slashed the budget for importing the fuel. He said Iran would end petrol imports but traders said they doubted Tehran could do so.

Despite holding the world's second biggest oil reserves, Iran lacks refinery capacity and imports more than 40 percent of the 70 million liters (440,000 barrels) of gasoline it burns each day.

Most gasoline imports come from western Europe, with trading house Vitol the leading supplier, market sources said. India has also featured as a key exporter, at times supplying up to 25,000 bpd.

International traders watch major gasoline importer Iran closely for any sign of fluctuations in demand, and wait and see if the Islamic Republic halts its 15 monthly tanker shipments.

"Each car will receive a ration of less than five liters if rationing happens," state television quoted Vaziri-Hamaneh as saying.

"Only taxis and public transport will receive more than the ration."

The government is due to issue its final verdict on gasoline rationing this week.

Some economists had called for Iran to raise the price of gasoline to market levels or introduce a dual-pricing system under which motorists could pay unsubsidized rates for anything they bought beyond the ration. The minister dismissed this.

“Announcing a sudden rise in the gasoline price will cause an inflation shock which society cannot take now," he said, adding the real price of gasoline was 55 cents per liter, not the nine cents it fetches at pumps.

Some Iranian politicians have dismissed fears that rationing could spark social unrest, stressing how Iranians accepted a coupon system during the 1980-1988 war against Iraq.

However, the fact is that most traded goods move by road and hikes in fuel prices and transportation have traditionally sparked sharp spikes in the cost of basic good.

Iran's cheap gasoline culture chokes big cities with heavy pollution. Iran has ambitious plans to upgrade refineries over the next five years and lift daily gasoline output to 120 million