Posted on 03/10/2007 4:42:41 PM PST by blam
Iran votes to impose petrol rationing
By Gethin Chamberlain and Kay Biouki in Teheran, Sunday Telegraph
Last Updated: 12:24am GMT 11/03/2007
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."
They are swimming in oil and gas... yet look at the disastrous failure their economy and "state" is.
I doubt anything short of an attack will stop the Islamic regime... but I hope some more Iranians are growing the spine to actively resist the regime.
If you want real civil unrest, have a large segment of your population suddenly discover they can't pay their rent and put food on the table
That sets a new standard for competent political leadership. Maybe the Mossad won't need to cap Mahmoud after all.
"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.
Say, didn't this war take place in 1980-88? That was nearly 20 years ago. Still no refineries, guys?
What a great opportunity for Nike to swoop in and make a buck.
I guess we will be doing that next here with all the illegal's taking up driving.
I read 2 other articles today, about Mexico and Venezuela, discussing their oil industries. They are both in decline. Seems like someone would realize state ownership of the means of production doesn't work too well. On the other hand, it took the Russians 70 years to realize that and now they're returning to that model.
Funny isn't it? The late Shah of Iran created a modern infrastructure which was virtually destroyed by the Revolution, war and tyranny... now during almost 30 years of Islamofascist rule in Iran they failed to reconstruct it. Now you can figure out, what the result of an real US Aerial Bombardment against their nuke-infrastructure would be... They wouldn't be able to rebuilt anything for decades.
Well...if they don't have any gas...maybe the new re-trained Iraqi army can roll over them.
"Say, didn't this war take place in 1980-88? That was nearly 20 years ago. Still no refineries, guys?"
I'd guess that they are too busy trying to bring an end to the world.
Ha Ha! Mamoud promised prosperity for Iran, and they are circling the toilet under his leadership!
Maybe we can sell Iran some gas at $3.30 per gallon -- as I just paid.
Then I hear Chrissy Mathews laud Condaleeza Rice's initiatives with Iran AND North Korea as successes...and I feel like we've hit the trifecta. Of course Iran is prematuve and I never believe Mathews, but I can dream....
Now just suppose the surge works....hell, we might have to pull the next Bush out of exile.
Last time we did that was hmmmmmmm..........
WWII!!!!!!!!!!!!!
They are at war with US, but we are just swatting allah the flies swarming off their diseased and dying carcass of a nation under satan.
"Now you can figure out, what the result of an real US Aerial Bombardment against their nuke-infrastructure would be... They wouldn't be able to rebuilt anything for decades."
Why would they need to rebuild their new glass parking lot?
The Inflation is very bad and the Iranian people are already having difficulty buying food and some items are getting hard to come by.
Islamists aren't big on things like infrastructure and industrial capacity.
Hell, in the five years the Taliban ruled Afghanistan, the only public works project they managed to complete was a 300 foot asphalt driveway to Mullah Omar's house.
Let them eat caviar.
They are swimming in oil and gas...
They're swimming in oil. As I understand it, they don't have any refineries, so they have to import gas.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.