Long Term Reactions To Gas Rationing Plan
As of mid 2008 the Gas Rationing Plan was regarded as a total failure, due to the reasons below:
- Investment of millions of dollars in infrastructure.
- Infrastructure that is unsecured, open to theft, and slow, creating bottlenecks at petrol stations.
- Creation of a black market for petrol, to bypass limitations on purchasable liters.
- Increase in price of petrol.
- Not reducing traffic due to lack of public transport.
- Cause of general inflation due to cost of living.
Oil Minister said the gasoline rationing scheme has helped the country curb consumption by up to 20 million liters a day or $4 billion (2008). Consumption rates approach 22.5 million gallons (85.2 million liters) per day without the restrictions.
Critics acknowledge that rationing did bring consumption down by around 16 million liter a day. Then again, extra quotas for various government organizations, individuals with special needs and some businesses, as well as a 100-liter bonus for ’summer holidays’ allocated by the government reversed the initial fall in consumption. According to Iran-Daily:
Consumers under 45 different categories are now receiving additional gasoline rations. In the early stages of the plan, traffic was reduced, gasoline consumption went down, there was less pollution and people were adapting to the change in fuel consumption patterns. However with the announcement of extra quotas, the initial achievements were destroyed.
In June 2009, Oil Ministry announced that Iran has so far saved $8.5 billion through the nationwide fuel rations program. Regarding the fuel rationing program, if the plan had not been executed, Iran would have had to import 33 million liters of gasoline per day in 2007-8 and 44 million liters in 2008-9. With the implementation of the plan these figures reduced to 18.9 million liters and 21.6 million liters per day, respectively.
Read more about this topic: 2007 Gasoline Rationing Plan In Iran
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