Gas Shortages in Iran

Iran, one of the largest producers of oil in the world, has shortages of gasoline and has just introduced a rationing scheme causing riots in the streets.

Need I explain why the shortage exists?

Under the rationing plan, owners of private cars can buy 26 gallons of
fuel per month at the subsidized price of 38 cents per gallon.

and this tidbit is interesting.

Conservatives in Iran’s parliament, especially those aligned with
the country’s national oil company, have long pushed for higher
gasoline prices to curtail demand and free up government funds for
investment in more oil and gas production.

Ahmadinejad had resisted allowing increases because of his campaign promises to share Iran’s oil wealth with the nation’s poor.


Comments for this post are closed