2007 Gas Rationing Plan in Iran
2007 Gasoline Rationing Plan in Iran was launched by president Mahmoud Ahmadinejad's cabinet to reduce that country's fuel consumption. Although Iran is one of the world's largest producers of petroleum, rapid increases in demand and limited refining capacity has forced the country to import about 40% of its gasoline, at an annual cost of up to $7 billion.
The fuel rationing originally triggered discontent in Iran, but, according to analysts quoted in the Western news media, the Iranian government is hoping that reducing gasoline imports will help insulate the country from international pressure related to its nuclear program. "We will greatly suffer if they (foreign countries) suddenly decide not to sell us fuel," said Iranian political analyst Saeed Leylaz. "Fuel rationing is a security-economic decision to reduce fuel consumption." In an interview Iranian president Mahmoud Ahmadinejad said: "They [Americans] had a plan and idea that is neutralized. They don't know our nation. They think if they refuse to provide us with gasoline, our nation would say we don't want nuclear energy."
An increase in population since 1980 from 40 to 68 million people has pushed Iran’s gasoline consumption up by nearly 13 percent annually over the past five years. As a result, the country consumes far more gasoline than its refineries can provide. Production stands at 10.5 million US gallons (40,000 m3) a day, compared with daily demand standing at 18.5 million US gallons (70,000 m3). With 43 percent of its gasoline imported, Iran is the world’s second largest gasoline importer.
Iran's petrol is heavily subsidised, sold at about a fifth of its real cost. The price of 1,000 rials ($0.11) per litre makes Iran one of the cheapest countries in the world for motorists. The government maintains that the rich benefit from 70 percent of subsidies and that it is one of the primary reasons for changing the subsidies system.
Iran took action to reduce its dependence on foreign gasoline through a three-pronged strategy which includes:
A special committee set up by the government came up with a four-point program which includes:
The Iranian government provides incentives to CNG car buyers and has meanwhile decreased the gasoline subsidies. Iran is the Middle East's leading car manufacturer. In 2005 Iranian automakers produced nearly one million vehicles including 884,000 passenger cars and 104,000 heavy vehicles, altogether worth $11.6 billion. The Iranian government aims to have most of Iran’s cars running on natural gas by 2015.
...
Wikipedia