Iran may cut gasoline quota by 20 pct in winter

TEHRAN, Nov 15 (Reuters) - Iran may reduce private motorists' quota of heavily-subsidised gasoline by 20 percent during the coming winter months, a senior official was quoted as saying on Sunday.

Such a measure could help cut consumption and also reduce Iran's vulnerability to any Western sanctions targeting the country's fuel imports.

Iran, the world's fifth-largest oil exporter, lacks sufficient refining capacity and imports 40 percent of its gasoline. Domestic consumption stands at around 65 million litres a day.

Under a rationing scheme introduced in mid-2007, motorists can buy 100 litres of gasoline per month for the price of 1,000 rials (about 10 U.S. cents) per litre -- among the cheapest fuel in the world.

"There is a possibility of a reduction of 20 litres (per month) for private motorists during the winter time," the semi-official Mehr News Agency quoted Ali Rabi'i of the state fuel management organisation as telling reporters.

Explaining the planned move, the same official said on state radio that people travelled less during the winter period, which starts on Dec. 22 and lasts for three months.

Mehr did not say what would happen after this winter period.

Oil Minister Massoud Mirkazemi has said that from March 2010 the allocated monthly fuel quota will be lowered to around 55 to 60 litres and will gradually be eliminated within five years.

Free market gasoline currently costs 4,000 rials a litre.