[A-List] Renewed Controversy over Petrol Rationing in Iran

["Yoshie Furuhashi" <critical.montages@xxxxxxxxx>]

Speaking of political and economic costs and benefits, what would the
Ahmadinejad administration do if it were a socialist administration,
with regard to the petrol question?  Would it do a different thing
than what it is doing, under the same internal and external
conditions? -- Yoshie

<http://news.monstersandcritics.com/middleeast/news/article_1334334.php/Renewed_controversy_over_petrol_rationing_in_Iran>
Middle East News
Renewed controversy over petrol rationing in Iran

Jul 24, 2007, 21:27 GMT

Tehran - the Iranian Parliament on Tuesday again pushed the government
to loosen its unpopular petrol rationing scheme to allow people whose
livelihoods have been affected to buy extra fuel at higher prices.

Since June 27, Iran has been rationing petrol to 100 litres per month
for normal cars, 300 litres for government cars and 800 litres for
taxis, with a litre of normal petrol costing 10.8 cents and 15.1 cents
for a litre of super petrol.

The decision was based on a parliamentary bill that had also approved
that additional quotas at higher or floating rates - around 65 to 95
cents per litre - should be allocated to people whose livelihoods
depend on their cars.

The parliament says that the government is obliged to implement the
parliamentary bill, but the government wants to maintain the status
quo and only increase the quota for organizations and working groups
whose need for a higher quota is proven.

President Mahmoud Ahmadinejad said Tuesday at a meeting in Tehran with
parliament deputies that a non-rationed petrol quota would cause 'an
inflation of more than 100 per cent' and eventually harm lower-income
classes.

Ahmadinejad called on all Iranians to learn optimal energy consumption
and reduce use of their cars to prevent traffic jams and air
pollution.

The president is in favour of compressed natural gas (CNG) systems to
fuel vehicles instead of petrol to further decrease the need for
refined petrol imports. He has obliged local automobile makers to
produce dual-fuel cars running on both petrol and CNG.

The rationing plan is very unpopular, with Iranians asking why - in
one of the world's oil-richest countries - petrol should be rationed
and why they are not allowed to spend their money for what they
desperately need.

Since the introduction of the plan, however, Tehran has seen visible
improvements in air quality and decreased traffic congestion,
including a 20-per-cent drop in traffic jams and a 30-per-cent decline
in accidents.

Opponents of the plan say that petrol rationing has had negative
impacts on the economy and social life.

Parliamentarians on Tuesday cited a 70-per-cent decrease in tourist
arrivals at summer resorts and pilgrimage venues, causing a severe
blow to provinces whose main income is from tourism.

Due to a lack of public transportation, people in big cities including
Tehran are suffering serious transportation problems. Many drivers
have resorted to buying petrol on the black market at double or triple
the price set by the government.

Despite strict government control, prices - and not just taxi rates -
have already been increasing following the implementation of the
rationing plan.

Observers believe the plan could dent Ahmadinejad's popularity ahead
of next March's parliamentary elections or even negatively affect his
chances of being re-elected in the 2009 presidential election.

--
Yoshie