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June 27, 2007
Gasoline rationing in Iran (updated)
Iran has imposed, with only two hours' notice, fairly stringent gasoline rationing, according to the BBC:
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
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: