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June 27, 2007

Gasoline rationing in Iran (updated)

Thomas Lifson
Iran has imposed, with only two hours' notice, fairly stringent gasoline rationing, according to the BBC:

At least one petrol station has been set on fire in the Iranian capital, Tehran, after the government announced fuel rationing for private motorists.

Iranians were given only two hours' notice of the move that limits private drivers to 100 litres of fuel a month.

Despite its huge energy reserves Iran lacks refining capacity, forcing it to import about 40% of its petrol.

Tehran is trying to rein in fuel consumption over fears of possible UN sanctions over its nuclear programme.
Is the move a matter of money? Subsidies for the extremely cheap gasoline in Iran cost the government a huge amount of money. But the move will not anger people, it risks sparking inflation.

Or could the move be related to mobilization for a war effort?

Hat tip: Ed Lasky

Update:
 
Marc Wolfensberger of Bloomberg adds important information.

Iran is spending $5 billion a year to import gasoline.

Taxi drivers will get 800 liters a month (roughly 200 gallons).

"At least" five filling stations in Tehran were set ablaze by rioters.

The Oil Minister has been summoned to parliament today to testify.

Parliament may consider if motorists will be allowed to buy unsubsidized gasoline at market rates in excess of the quota.

The rationing is set for four months, but could be extended.

Domestic consumption of gasoline has increased 10% a year for the past 5 years, and at current rates Iran will not have oil left for export by 2019.

And wait until the greenies read this:
The Pakyan car, a descendant of Britain's Hillman Hunter owned by four out of 10 Iranians, uses as much as 16 liters of gasoline per 100 kilometers, about 15 miles per gallon. The 3.3-liter-a-day ration limits the least efficient Pakyans to about 20 kilometers, or 12 miles, a day. That's not enough to get from central Tehran to the city's new airport, 35 kilometers to the south



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