Iran considers petrol rationing as UN sanctions loom

Iran, OPEC’s second largest oil producer, is expected to start rationing petrol within the next month. The move would come as the international community is discussing what further sanctions to place on Iran for continuing to enrich uranium. The Iranian Parliament has just approved a petrol rationing bill. Although heavily subsidised, like many other basic goods in Iran, much of it has to be imported at market price because the country has a shortage of refineries.

The problem being discussed is how to ration it. An electronic ration card is one option. Raising petrol prices is another. It is presently only 9 cents a litre.

Inflation though is a major worry for President Ahmadinejad’s government, already blamed for soaring prices. He had promised his people that the revenue from Iran’s oil sales would be shared fairly, but with inflation running at 16 per cent, resentment is increasing.

EuroNews