Post #7 Iran tightens gasoline rations, cuts subsidies

Click here to read the BBC News article "Iran tightens petrol rations as economic sanctions loom," written on Wednesday, March 17th.
The Iranian government has announced that it is to begun reducing petrol rations by 25% starting March 21, the beginning of the Iranian New Year. Prior to the cutbacks, Iranian citizens were allotted 80 liters of gasoline per month, at the cost of ten cents per liter, and 40 cents for every liter over the 80 liter limit. With the initiation of the rations, that petrol cap now becomes 60 liters per month.
The new rations are believed to be a result of concern in regards to the possibility of new economic sanctions as a result of the controversy over Iran's nuclear weapons program. Iran consumes 65 million liters of petrol per day, and imports a third of that amount. A variety of energies have already ceased trading with Iran after facing pressure from the United States. The government of Iran has pledged to increase its local petrol production by 13 million liters per day, as a safeguard to any further sanctions.
General Mohammad Rouyanian, the head of Iran's Transportation and Fuel management committee, has stated that the increased rations will last for only three months, but may be increased if needed.
Fuel is Iran's only worry; the country still faces inflation, and a lack of revenue. Iran heavily subsidizes its energy and food services. This has caused problems for the government, who recently decided to remove $200 billion dollars worth of subsidies. President Ahmadinejad was believed to have wanted a significantly larger sum removed, but Iranian MPs believe that it could triple the country's inflation, which only recently decreased to 11.3%.
This relates to comparative government because it deals with public policy and legitimacy. By increasing rations and requiring citizens to pay more for everday activities, it may adversely affect the way they view their government, which is already beset from all sides by controversy and challenges from Mousavi's opposition party. Also, by altering the way the country is run, Iran could be seen as not being as formidable and protected by the West as it claims to be, which might affect future negations.

Grade This Post
Photo courtesy of Tehran Times