TEHRAN, June 10 (Xinhua) -- Iran will scale down production of gasoline-powered vehicles and increase cars with dual-fuel and natural gas engines, Iran's English-language Press TV reported on Tuesday.

    "Sixty percent of passenger cars produced this year will use natural gas as fuel or dual-fuel, and the remaining 40 percent will run on regular gasoline," said a statement released by the Cabinet of President Mahmoud Ahmadinejad.

    In addition, 80 percent of vehicles manufactured for public transportation by Iranian automakers and 80 percent of pickup trucks must have dual-fuel engines or be powered by natural gas.

    Dual-fuel vehicles produced in Iran can consume both gasoline and compressed natural gas.

    On Saturday, Iran announced a new gas rationing program under which owners of luxury cars can only buy gasoline at market price from June 21. Iran introduced rationing in June 2007 to curb fuel consumption.

    Iran is the world's fourth-largest oil producer but lacks enough refining capacity for domestic needs, forcing it to import large amounts of gasoline which burdens its finance.