2007 Gasoline Rationing Plan in Iran - Background

Background

See also: Ministry of Petroleum of Iran

An increase in population since 1980 from 40 to 68 million people has pushed Iran’s gasoline consumption up by nearly 13 percent annually over the past five years. As a result the country consumes far more gasoline than its refineries can provide. Production stands at 10.5 million US gallons (40,000 m3) a day, compared with daily demand standing at 18.5 million US gallons (70,000 m3). With 43 percent of its gasoline imported, Iran is the world’s second largest gasoline importer.

Iran's petrol is heavily subsidised, sold at about a fifth of its real cost. The price of 1,000 rials ($0.11) per litre makes Iran one of the cheapest countries in the world for motorists. The government maintains that the rich benefit from 70 percent of subsidies and that it is one of the primary reasons for changing the subsidies system.

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