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Drivers Celebrate Iran's Experiment |
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Written by News Networks Service
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Friday, 21 March 2008 |
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Iranians hit the roads for the start of their new year, a period of national celebration marked by an exodus from the cities. But for many, this year there is ore cause than usual for good cheer.
Iranians, who love their cars perhaps even more than Americans, will be able to buy as much petrol as they like at the free market price of about 40 cents a liter. |
Although petrol will still cost less than bottled water, this is a big change in a country where cheap fuel has long been a way of life.
 President Mahmoud Ahmadinejad's government, trying to limit the burden of subsidies on state coffers, will today start an experiment to build on its rationing scheme.
Although Iran is the second biggest oil producer in OPEC, it must import as much as 60 per cent of its domestic fuel needs. This is sold to consumers at cut-price rates - government subsidies amount to 20 per cent of Iran's annual gross domestic product. In an attempt to reduce demand, the government last June started limiting motorists to 120 liters of petrol a month at around 10 cents a liter.
 Hojjatollah Ghanimifard, a senior oil ministry official in charge of buying petrol, recently told the Financial Times that rationing helped to halve imports to 15m liters a day.
Nine months on, the government is preparing to introduce a new measure. For the next month, Iranians will be able to buy additional petrol at the non-subsidized price of 40 cents a liter.
The innovation was announced in the lead-up to last week's parliamentary election, overwhelmingly won by conservative factions. The timing is a boon to Iranians, many of whom return to their hometowns or take holidays during the long New Year period.
"For the last three days, people have been coming and asking if the new petrol system has started," said Jafaar Rezai, an attendant at a petrol station on Vali-e Asr street, one of Tehran's main thoroughfares, where the queue of cars stretched for more than a kilometer yesterday. "Everyone wants to buy more petrol before the New Year period," he said.
Many Iranians, like Saeb, who was waiting for petrol on Vali-e Asr before driving north to the Caspian Sea for the new year, support the idea. |
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Last Updated ( Friday, 21 March 2008 )
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