Iran may give more fuel rations to help tourism

TEHRAN, Aug 20 (Reuters) Iran may offer drivers extra gasoline above their monthly quota, a newspaper said today, in a move to help boost domestic tourism which hoteliers say has suffered a blow since fuel rationing started in June.

Iran, OPEC's second-biggest oil producer, started rationing gasoline on June 27, as summer holidays began and when Iranians usually leave town, many to Caspian Sea resorts in the north.

The fuel scheme was introduced to curb soaring consumption which far outstripped the country's ability to produce gasoline. Iran was importing about 40 per cent of its needs before rationing began, costing it some 5 billion dollars a year.

But many private drivers complain the 100 litres they get each month is not enough to meet everyday needs, let alone holidays.

Airline travel has surged since rationing started.

''Following the final decision of decision-makers, 150 to 200 litres of 'travel gasoline' will be added to the quotas of drivers in the country,'' Tehran Emrouz newspaper reported today, without citing a source for its report.

It said the addition would be offered this week.

''Increasing the fuel quota for drivers is aimed at easing some concerns about a decrease in the number of (tourist) trips this summer. Most likely it will be followed by an increase in trips next week'' when there is a public holiday, it added.

Hoteliers in Caspian resorts, a popular getaway particularly for millions of Iranians escaping Tehran, say their businesses have been hit by the rationing scheme and fear worse to come.

''Rationing has definitely had an impact on our hotel. The number of our customers has dropped 30 to 40 per cent this summer,'' Mehrdad Farhat-Tabar, manager of the Caspian's Narenjestan hotel, told Reuters.

He said occupancy had plunged to 10 per cent of the hotel's 191 rooms, when it should be around 40 per cent or more at this time of year. ''When the six months (fuel) quotas finish, it will be even worse,'' he said.

RESERVATIONS DROP Motorists can buy their quota up to six months in advance. But many have avoided travelling for fear of using up quotas too quickly. There is no official system for buying extra fuel, even at higher prices, although a black market has emerged.

''The number of tourists coming to this hotel has been cut by half this year,'' said Esfandiar, a receptionist who only gave his first name, at a five-star hotel near the Caspian town of Chalus.

''We are concerned about our children who want to go to school in a few weeks. There are no cars (with fuel) to take them,'' he added.

Schools restart in September.

Workers at fuel stations, many of which are privately owned, are also complaining about the scheme.

''Our gasoline sale has dropped by 15,000 to 20,000 litres a day compared to the time before rationing began. People try to save their fuel,'' said Arsalan Jafari, manager of a pump station, also on the Caspian coast.

Iranian officials say fuel consumption has dropped. But, at least in the capital, there has been no obvious easing of traffic jams after roads initially became quieter when rationing was first implemented.

However, some hoteliers said bookings had improved after reservations plunged at the start of the summer.

''The first two weeks were very scary. We were becoming paralyzed in the first week but things have gotten better now. He had many travellers in the past few weeks,'' said Amir Khazaie, executive manager of Shalizar Hotel in Noshahr city.

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