Iran, Low on Gasoline, to Be Supplied by Venezuela

In another move to forge alliances, Hugo Chavez travelled to Iran this week in order to spur a series of economic deals, including the building of a dairy factory in Venezuela and a petrochemical plant in the Persian Gulf.

Iran’s request to purchase refined gasoline from Venezuela has been met with enthusiasm. Due to high consumption and limited refining capabilities, Iran imports gasoline from 16 countries.

This meeting has the dual purpose of reducing Iran’s international isolation and portraying Hugo Chavez as a global player.

Venezuela agreed to sell Iran gasoline on Tuesday, less than a week after Iran unveiled a rationing program to limit its dependence on gasoline imports.

“The Iranian government has asked to buy gasoline from us, and we have accepted the request,” Rafael Ramírez, Venezuela’s energy minister, told the newspaper Shargh. He declined to specify the quantity of gasoline Venezuela would sell to Iran or at what price.

Iran, a major oil exporter, imports 40 percent of its gasoline because of high consumption and limited refining capacity. While gasoline costs about $2 a gallon on world markets, the government sells it for 34 cents, a subsidy that costs it about $5 billion a year.

Iran imports gasoline from 16 countries, including India, the Netherlands, France and the United Arab Emirates.

Posted by antiguanoctane
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