Iran will become self-sufficient in gasoline production by March 2012, an official said in comments published on Monday by the state news agency Irna.

Iran is the world's fifth-largest oil producer but lack of refining capacity forces it to import up to 40 percent of its gasoline needs -- making it potentially vulnerable to punitive international measures targeting the trade.

'We will become self-sufficient by the end of next Iranian year upon the completion of two new fuel production projects,' said Deputy Oil Minister Alireza Zeighami.   

'Some 25 million litres per day will be added to Iran's gasoline production capacity.'    

The oil ministry said in May capacity would increase by 20 million litres with the completion of refineries in the cities of Bandar Abbas, Tabriz and Isfahan.

Zeighami said in June that Iran was producing about 43 million litres of gasoline per day. The threat of US sanctions on suppliers to Iran has reduced the pool of companies prepared to sell gasoline to the Opec member, although Iranian officials say the country faces no problems in buying what it needs.

Iranian authorities have repeatedly made such statements in recent months as Iran faces increased international pressure over its nuclear energy programme, which the West fears aims to develop nuclear weapons. Tehran says it is only interested in generating electrical power.   

Officials say the country will end importing gasoline as it completes the construction of new refineries and also takes measures to curb consumption by phasing out subsidies.   

'Some $2 billion was allocated for development of gasoline production schemes. Around $1.3 billion has been realised,' he said.

'Building new refineries need $26 billion ... $8.5 billion has been realised.'

Oil Minister Massoud Mirkazemi said in May that Iran needed around $25 billion a year in oil and gas industry investment and could turn into an importer of oil because of the lack of such funds.         

But foreign investors, analysts say, treated Iran with caution because of mounting international pressure on the country over its disputed nuclear programme.
 - Reuters