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| Syria-Lebanon-Iran |
| Iran Imposes Gas Rationing |
| 2007-03-11 |
| ht to Captain Ed Iranians are bracing themselves for a fresh round of belt tightening after their government voted to impose petrol rationing coupled with sharp rises in the price of fuel. The rationing system will limit Iranians to 22 gallons (100 litres) of petrol a month, two full tanks for a typical family car. It is a direct result of President Mahmoud Ahmadinejad's adherence to an economic model, based on Iranian self-sufficiency, that has caused housing and other living costs to soar. The basic price of petrol will rise by 25 per cent, but Iranians who need to use more than the permitted amount will be hit by rises of up to 450 per cent. Economists predict that the knock-on effect on the average Iranian will be dramatic, with retailers expected to pass on the additional costs to consumers. Iran is the second largest producer of oil in the Organisation of the Petroleum Exporting Countries but it imports 40 per cent of its petrol - worth about $3 billion a year - after its refining capacity was wrecked in the war with Iraq. It currently sells the petrol at subsidised prices. Mr Ahmadinejad had publicly argued against the abolition of subsidies and advocated persuading consumers to switch to other fuel sources such as natural gas, which do not rely on foreign imports. But critics say his opposition was manufactured for public consumption. They point out that the price increases had already been factored into his government's budget. Some Iranians suspect that the move is also a precautionary measure against further possible sanctions which may be imposed on Iran for pressing ahead with its nuclear programme in defiance of the United Nations security council. Under the new rules, which will take effect in late spring, motorists will be given coupons entitling them to 100 litres of petrol a month at the increased price of 1,000 rial (about 5p) per litre. Additional petrol will have to be bought at open market prices of between 14p and 22p per litre. The plan was due to be introduced on March 21 but has been delayed for three months to allow time for the distribution of ration cards. Some drivers have been issued with the cards but at least half are still waiting to receive them. Work to fit the nation's petrol pumps with card readers is not yet complete. Iranian consumers said the changes would push up inflation. Djamile Ershadi, 70, a retired government clerk, said: "Everything has gone up. You cannot live on an ordinary salary any more. Life has become much harder." |
| Posted by:Frank G |
| #9 The report didn't mention stagnant Iranian oil production with an anticipated drastic future decline. |
| Posted by: Anguper Hupomosing9418 2007-03-11 18:04 |
| #8 AP, the second. |
| Posted by: twobyfour 2007-03-11 17:45 |
| #7 So, my question is: can the MMs pay for external refining or are they beind there too? Or do they have to make trades of crude with foreign refiners to get gasoline? |
| Posted by: Alaska Paul 2007-03-11 16:36 |
| #6 3dc, a good point, but that is now. Since they have to buy refined products, I guesss they do not have enough to pay off Russians. Of course, the baksheesh culture has also something to do with it, let alone the embezzling propensity on mullahs of all turbans. Barb, it is not much the insanity--which no doubt is present in spades--but the Iranian version of "Who want's to be a millionaire" played by mullahs. |
| Posted by: twobyfour 2007-03-11 16:04 |
| #5 "So, under generous conditions, the Iranians would've been sufficient in 2004 as the domestic gasoline supply is concerned. But unfortunately for them, their "leaders" are clinically insane." There - fixed that for ya', #3 2x4. :-D |
| Posted by: Barbara Skolaut 2007-03-11 15:41 |
| #4 Ties in with not enough money to pay off the Russians to finish their nuke plant. |
| Posted by: 3dc 2007-03-11 15:40 |
| #3 "after its refining capacity was wrecked in the war with Iraq" That is what is so odd. The war ended in 1988. 19 years ago. Can someone explain to me how is it possible not to re-build refineries in that time frame? I know the refineries were built by non-Iranian companies in the first place. But... 1. send a bunch of students to western universities to get a handle on the subject--1988-1992/1993. 2. Start the re-build project development phase--1993-1998. 3. Build several refineries to cover the estimated need and plan for a buffer for some years ahead-1998-2003 So, under generous conditions, the Iranians would've been sufficient in 2004 as the domestic gasoline supply is concerned. |
| Posted by: twobyfour 2007-03-11 15:37 |
| #2 Hey, Juiche comes to Iran. And, I would imagine, that a whole black market springing up in petrol for the clever ones, while the just plain joes get pushed down harder and harder. Gas to get to work, but not to go anywhere for fun. Mullahs getting richer while the commoners getting squeezed. Seeds of discontent sown. Faster, Please. |
| Posted by: Alaska Paul 2007-03-11 14:02 |
| #1 ...Gonna be a little hard for that Twelfth Imam to get the party started if he can't get a ride from the well. Mike |
| Posted by: Mike Kozlowski 2007-03-11 12:34 |