Wednesday, June 27, 2007

Fuel rationing sparks Tehran riots - but Ahmadinejad is correct.

Under the rationing plan, owners of private cars can buy only 100 litres (26 gallons) of petrol a month at the subsidised price of 1,000 rials per litre (0.049p) [I am pretty sure the Guardian is wrong - it often is - and that is nearer 10 cents a litre]. Taxis can get 800 litres a month at the subsidised rate.

The free market price is expected to go up to US 50-70 cents. This is still cheap by international standards.

Despite its huge energy reserves, Iran lacks refining capacity and must import about 40 percent of its gasoline. Imports are a big burden on state coffers. It would be best if the USA tried to work with Iran to help it to reduce its own relative poverty level and raise its standard of living, rather than to force it into corners in an attempt to appease Israel, so it has to be bombed again. Appeasement - that is a word I have heard before.

IMO: Good for Mr Ahmadinejad and I hope he continues to adhere to his brave social principles, and to discipline the louts if they burn down his petrol stations. Those louts could even be CIA-inspired, directly or quite indirectly. We may yet hear the Internationale in Iran.

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