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. |