Smart card – Ahmadinejad’s answer to petrol consumption

Although Iran has a daily oil production of 4.2 million barrels, it still spends five to eight billion dollars for petrol imports.

Of the petrol consumption of some 73 million litres daily, over 40 percent is imported – but at the pump, Iranians have to pay only 11 cents per litre, or only about one-fourth of the actual cost.

The lavish subsidies for keeping petrol prices low and people’s spirits high have not only caused a huge hole in Iran’s budget but have also increased the number cars in Iran.

MalaysiaSun