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Syria-Lebanon-Iran
Iran begins fuel rationing with official cars
2007-06-15
Iran started its first phase of petrol rationing yesterday, limiting the fuel that drivers of government cars can buy, but many Iranians are still confused about how and when the full rationing plan would be in place. Filling station workers said they were now limiting government-owned cars to 300 litres a month. But one said he was not sure what would happen if drivers of such cars wanted to buy fuel above that amount.

Despite big energy reserves, Iran lacks refining capacity to meet domestic fuel demand, which analysts say is rising at about 10 per cent a year. Heavy subsidies which drain state coffers make fuel so cheap it encourages waste, analysts say. The No 2 OPEC oil producer has to import about 40 per cent of daily consumption estimated at about 75 million litres, a sensitive issue as world powers have threatened to step up UN sanctions over Iran's disputed nuclear programme.

"We had many government-owned cars coming here this morning for fuel and the rationing has started," said Ali Kalhor, a manager at a fuel station in central Tehran. "We still do not know the price of extra fuel if anybody wants it." Some MPs have said fuel above the rationed quota would be offered at market rates but no official announcement has been made. Officials have sent conflicting signals about when full rationing would be in place, some say it might be next week.

Critics question whether rationing government cars will help reduce the state's fuel subsidy bill or cut consumption. One former official said those who drive state cars claim fuel on expenses so - subsidised or not - the government still pays. Qodratollah Imani, an MP, was quoted by Poul newspaper as saying parliament might debate scrapping the idea. So far, the government has raised the subsidised fuel price by 25 per cent to 1,000 rials (5Å“p) a litre. Drivers must produce electronic "smart" cards to buy any fuel. But the government has not said how much fuel would be given to ordinary drivers once rationing is enforced. One official suggested a figure of 90 litres per day, an amount dismissed by drivers as too little.
Posted by:Seafarious

#9  Does everyone over there drive a Rolls or Maybach? Or a F-850?

Nope. They drive P51s, F4U3s, F6Fs, P40s...
Posted by: JFM   2007-06-15 09:16  

#8  Oh, and thinking back even further, I had a 1960 Jaguar Mk IX Automatic (!). It had 2 gas tanks, and it got really low milage. Hard for me to really remember, but less than 10 mpg, certainly. I owned it back during the price spike in the 80s, of course...
Posted by: Mark E.   2007-06-15 08:38  

#7  Heavy subsidies which drain state coffers make fuel so cheap it encourages waste, analysts say.

Still haven't figured out that supply / demand market thingy...
Posted by: Raj   2007-06-15 08:22  

#6  "Does everyone over there drive a Rolls or Maybach? Or a F-850?"

I once had a 91 Caddy Sedan de Ville that got between 7 and 12 to the gallon. Most comfortable car I ever had... Expensive to use today, though...
Posted by: Mark E.   2007-06-15 08:22  

#5  Don't think it would go outside the country C_L. Straight to the parallel market.

Government planning, is there anything it can't do?
Posted by: Shipman   2007-06-15 04:31  

#4  That's 5 litres a day to consume and 85 litres a day to smuggle outside the country.
Posted by: Classical_Liberal   2007-06-15 03:05  

#3  Maybe the 90 litres per day is for the whole country.
Posted by: Anguper Hupomosing9418   2007-06-15 02:48  

#2  Filling station workers said they were now limiting government-owned cars to 300 litres a month.

As government animals are in average thrice more equal then others, the figure 90 l must be per month.
Posted by: twobyfour   2007-06-15 00:48  

#1  90 liters per day?

I drive a full-sized car with a big thirsty V8. It would take Me almost 2 weeks to go through 90 liters. These are "ordinary drivers," not long-haul truckers.

Does everyone over there drive a Rolls or Maybach? Or a F-850?
Posted by: Gary and the Samoyeds   2007-06-15 00:41  

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