Iran is fully prepared to meet its domestic gasoline needs in the event of tougher US-imposed sanctions or a blockade on gasoline imports.

"We are currently facing no problem in importing the gasoline we require and will be able to produce gasoline in the quickest time," said Iran's Oil Minister, Gholam-Hossein Nozari, in reference to bills in the US Congress.

Supported by the American-Israel Public Affairs Committee (AIPAC), House Resolution 362 (and the Senate version, Resolution 580), known together as the 'Iran War Resolution' can be considered a means of imposing harsher sanctions on oil-rich Iran.

The resolution demands that the US president "initiate an international effort to immediately and dramatically increase the economic, political and diplomatic pressure on Iran to verifiably suspend its nuclear enrichment activities..." The resolution instructs the US president to, among other things, prohibit the export to Iran of all refined petroleum products; impose stringent inspection requirements on all persons, vehicles, ships, planes, trains, and cargo entering or departing Iran.

This resolution, which was introduced at an AIPAC annual policy conference, has gained 220 co-sponsors in the House and 32 in the Senate. It will likely be put to a vote after July 4.

"There is enough gasoline on the international market. The United States can not pressure Iran's gasoline imports," Nozari stated. The Americans themselves are a net gas importer and consumer and have no extra gasoline for sale, he pointed out.

"As long as oil-rich Iran can find customers among consuming nations for its crude, it will be able to import its gasoline requirements," Mohammad-Ali Khatibi, Iran's governor to the Organization of Petroleum Exporting Countries (OPEC), told the Persian daily Sarmayeh in an interview published on Tuesday.

Khatibi, however, ruled out the possibility of Washington implementing such a decision 'as the oil market is experiencing such a tense period.'

Akbar Torkan, a deputy oil minister, believes that the Oil Ministry could tackle such a potential blockade by cutting the gasoline quota under the current rationing program.

"We can cut the quota and only consume our domestic gasoline production of 45 million liters per day," Torkan added.

Since Iran has a limited gasoline refining capacity, it implemented a rationing program in June 2007 to limit fuel consumption and ease the burden on state coffers.

Under the current program, government subsidies allow fuel to be sold at 1,000 rials (about 11 US cents) a liter. The quota is 120 liters a month for private vehicles. Since March, drivers have been able to purchase additional gasoline for 4,000 rials per liter.

Iran's gasoline consumption stands at 65 million liters per day; the country needs to import an estimated 20 million liters of gasoline a day.

"We must always be prepared to deal with sanctions. The Oil Ministry has considered all 'possible scenarios' and drawn up plans for the worst situation," Torkan concluded.

MK/JG/GM