Iran is storing some 200,000 tons of gasoline, mainly offshore, in anticipation of increased travel during the Iranian New Year holiday starting March 21, industry sources said.
"They've got some 200,000 tons of gasoline sitting in storage," a Gulf-based industry source told Dow Jones Newswires Tuesday.
An Iranian oil official said Monday the Islamic republic is storing the gasoline in the run up to the Iranian New Year, which begins March 21.
"It's both onshore and offshore," the official said, adding that gasoline stored offshore is typically held in a Long Range 1, or LR1, or a Long Range 2, or LR2, vessel.
Gasoline storage begins "usually in the fourth quarter," the official told Dow Jones Newswires.
"This is normal before the end of the year because millions of people go traveling. For the new year, we need approval of the budget from the parliament and that's why we do stockpiling before the new year," the official added.
Iran, the Organization of Petroleum Exporting Countries' second-largest oil producer, traditionally experiences heavy gasoline consumption during the first 13 days of the Iranian New Year, when many Iranians travel on vacation.
To prepare for the rise in consumption, Iran stockpiles gasoline before the new year, and raises the amount of gasoline rationed for drivers at the start of the new year.