Views of a Populist Conservative

Wednesday, June 27, 2007

Iran fuel rations spark violence

At least 12 petrol stations have been torched in the Iranian capital, Tehran, after the government announced fuel rationing for private vehicles.
Windows were smashed and stones thrown at the stations, and there was traffic chaos as motorists queued to buy fuel.
Iranians were given only two hours' notice of the move that limits private drivers to 100 litres of fuel a month.
Despite its huge energy reserves, Iran lacks refining capacity and it imports about 40% of its petrol.
The country has a large budget deficit largely caused by fuel subsidies and the inflation rate is estimated at 20-30%.
The BBC's Tehran correspondent, Frances Harrison, says Iran is trying to rein in fuel consumption over fears of possible UN sanctions over its nuclear programme.
Iran fears the West could impose sanctions on its petrol imports and cripple its economy.

Read the article on BBC News.

0 comments: