AFP:

Iran is reintroducing fuel cards that will cap petrol purchases in a bid to combat rampant smuggling, state media reported on Tuesday.

Smuggling has boomed in recent months as the rial has plummeted against the dollar in the face of the reimposition of crippling US sanctions following Washington's withdrawal from a landmark 2015 nuclear deal between major powers and Tehran.

The Islamic republic has some of the most heavily subsidized petrol in the world, with a pump price of around $0.08 per liter (less than two US cents per gallon).

Low fuel prices have led to high consumption, with Iran's 80 million population buying an average of 90 million liters (20 million gallons) per day, according to state news agency IRNA.

They have also fueled very high levels of smuggling -- estimated at around 10 to 20 million liters (2.2 million - 4.5 million gallons) per day, IRNA said.

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