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Old January 9th, 2007, 05:41 PM   #1
shugs
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Petrol Rationing News

Iran to Ration Petrol in 2007

TEHRAN (Fars News Agency)- As a result of studies over the next Iranian year (beginning March 21, 2007) budget bill, the government has decided to ration petrol since next spring, an informed source said.

The source told FNA's economic desk that the government approval is aimed at optimizing fuel consumption in the country and preventing the wasteful and excessive use of the vital liquid.

The Iranian government had a similar plan to ration petrol use in the country during the current year, but a parliament approval allowed Ahmadinejad's administration to import $2.2 billion worth of petrol into the country.

The Iranian parliament then gave tentative approval for the spending of an extra $2 bln and 200 mln on petrol imports but warned fuel rationing might be necessary.

The MPs approved a draft proposal by the planning and budget commission to spend $2.2 bln until the end of the Iranian year in March 2007 on petrol imports, slashing back the $3.5 bln requested by government that would have obviated the need to ration fuel.

Iran is OPEC's number two producer of oil, but its refineries have a capacity of only 42 mln liters of petrol a day in a country where demand stands at more than 70 mln liters daily.

In February, parliament approved a 2.5 bln dollar budget for petrol imports which ran out by late September due to higher oil prices, rising consumption and the smuggling out of the country of millions of liters of petrol every month.

The head of parliament energy commission, Kamal Daneshyar, earlier said, "We have only three options to deal with petrol. One way is to ration it, the other way is to ... sell it at 3,000 Rial (33 US cents) per liter or at 5,000 Rials (almost half a dollar) per liter."

Some deputies voiced concern about the negative impact of spending money on fuel which is lavishly consumed in the Islamic republic, warning this could upset economic development.

Other lawmakers said rationing could lead to corruption.

"With approval of the bill, we ruin the country's self-sufficiency plans and harm national interests with regard to economic development," said Reza Talai Nik, MP from Bahar and Kaboudar Ahang.

A liter of regular petrol costs just 800 Rials (nine US cents, or 34 cents a gallon). Super costs 1,100 Rials (12 cents, or 45 cents a gallon).

Talai Nik said the bill was contrary to President Mahmoud Ahmadinejad's pledge to remove the gap between the rich and the poor.

"Why this huge subsidy should be paid for the rich in big cities who own a couple of cars for each family while we have people in villages who have no car to use the subsidized fuel," he said.

In his electoral campaign of June 2005, Iranian President Mahmoud Ahmadinejad pledged to bring "oil money onto people tables" and "spread justice".

The head of Management and Planning Organization, Farhad Rahbar, supported the 3.5-bln fuel bill as proposed by government.

"If we cut the imports from the current consumption rate, we (would have to) ask people to reduce their consumption by 50% and use substitute transportation vehicles which are not ready today," he said.

"Hopefully, we may be ready for rationing in 2007," he said.

Source: http://english.farsnews.com/newstext.php?nn=8510190463
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Old January 9th, 2007, 05:45 PM   #2
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I dont understand why the cannot simply raise the price of petrol and implement some kind of road tax system so every Tom, Dick and Harry doesnt buy a car!!!

It is so cheap to run a car in Iran it has almost turned into a one off cost of buying a car and thats it! Iranians (mostly Tehranis) are so wastefull, they do not all need a car and by many people pointlessly driving their cars has caused major conjestion issues... I am for Central Tehran having a conjestion charging system like in London.. rationing petrol wont help anything, they have to hit Iranians pockets for them to cut back!
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Old January 9th, 2007, 07:13 PM   #3
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The Iranian government had a similar plan to ration petrol use in the country during the current year, but a parliament approval allowed Ahmadinejad's administration to import $2.2 billion worth of petrol into the country
Yayy ?!
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Old January 9th, 2007, 07:52 PM   #4
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What is that supposed to mean, can you start explaining your non-sensical posts?

Iran has to import petrolium because during the Iran-Iraq war Saddam destroyed pretty much all of Iran's refineries therefore Iran does not have the capacity to refine enough oil for the nations needs... It imports petrolium from the UK and heavily subsidises its resale value.
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Old January 9th, 2007, 08:21 PM   #5
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Shugs, you have to look at this in the bigger picture. Iranians are using oil and gas out of control and that is hurting Iran's economy by not being able to export the quota to which they are entitled. There is great need for reform of some kind to slow that use. I don't think that rationing is the answer but rather increase in prices may be a better way to go. However, the gov't may not want to piss of the poor, which constitute a great number in Iran, perhaps a majority. This looks more "fair" in that everyone is rationed.

Either way, the real reason behind this move is clear. Iran is under sanctions. US is pushing and pushing hard to dry up Iran's oil exports. Frace pulled our of South Pars phase 17 and 18. Many other major banks have done the same in the oil and gas development. Iran is becoming desparate -- let's not kid anyone. Iran is in grave need of foreign investment in its old oil fields and the new, not yet fully developed, south pars. They cannot export the oil and gas unless the investments come in, which are not coming in.

So what do the Akhoonds do? What else but make the Iranians suffer yet mroe than they already do. Instead of negotiating and compromising so that investments can come in, they cut off the oil and gas to the Iranians so they can export their quota and fatten up their pockets. It's a shame. The whole scheme, the entire economic structure, the political negotatians, everything is a shame.

Not to go off topic, but certainly related to this, let me say this. These akhoonds think they can fight the west and the US. The US checkmated the Russians, which are the masters of many of these Akhoonds. By the actions that the US is taking by drying up investment, Iran will not be able to exports oil or gas much and its people will be even poorer and the economy will have failed even more. The Iranians economy is based on oil and gas and if there is no investment, there will be no revenue, and that means Iran will have no money and will be very poor. So sad when Iran has the second largest oil and gas reserves in the world. But this is a tragic truth.
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Old January 9th, 2007, 09:11 PM   #6
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I agree with you panj... As I said, rationing is definatly not the answer and I cannot see it solving anything. I mean there is a grander plan than all of this, possibly to sufficate Iran's economy until there is civil unrest? I mean it was extreme poverty that triggered the last revoloution.
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Old January 9th, 2007, 09:27 PM   #7
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Believe me, the poverty back then was NOTHING compared to what it is now and not even comparable to what it will be... Yet, Iran can give $500 million to Hibzullah.. How about fixing the economy first by stop giving away gifts that huge for no purpose when the people inside the country need the money themselves?
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Old January 9th, 2007, 10:00 PM   #8
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Well IMO that is the most worrying thing... Iranians are perfectly aware that all this is going on but they seem to not care... either they support them or they simply do not care and want to get on with their lives... everytime I go to Iran the people seem more pissed off at the akhoonds but at the same time they seem more lethargic about the whole situation.
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Old January 9th, 2007, 10:26 PM   #9
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Quote:
Originally Posted by shugs View Post
What is that supposed to mean, can you start explaining your non-sensical posts?

Iran has to import petrolium because during the Iran-Iraq war Saddam destroyed pretty much all of Iran's refineries therefore Iran does not have the capacity to refine enough oil for the nations needs... It imports petrolium from the UK and heavily subsidises its resale value.
lol this is the same guy who ones said in a argument that subsidizing the farmers in Iran isnt bad :P lol! subsidizing farmers is not bad but subsidizing cardrivers is? IMO both are bad... we should stop subsidizing everyone and only subsidise where its needed... this will get the government expands down with billions...
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Old January 9th, 2007, 10:50 PM   #10
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Subsidising petrol to that extent is stupid, its like shooting yourself in the foot... subsidising agriculture is beneficial to the rural communities.. but thats got nothing to do with this thread!
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Old January 9th, 2007, 10:53 PM   #11
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lol this is the same guy who ones said in a argument that subsidizing the farmers in Iran isnt bad :P lol! subsidizing farmers is not bad but subsidizing cardrivers is? IMO both are bad... we should stop subsidizing everyone and only subsidise where its needed... this will get the government expands down with billions...
When did I say subsidizing farmers is good in Iran?

Btw, I was just using considering Iran is a net exporter of oil. If it was iraq, i could understand but iran????
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Old January 10th, 2007, 01:12 AM   #12
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^who the hell was talking to you? i clearly quoted someone lol!
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sixty years ago, upon the invitation of the Russian Red Cross, Princess Ashraf Pahlavi, twin sister of the Shah of Iran, went to see Stalin in order to demand the retrieval of Soviet invading forces from Iran. The princess entered the Kremlin where she pleaded with great passion for the liberation of Iran, her motherland. Impressed by her courage, Stalin became all smiles. He said loudly to his rather stern entourage: "Now here is a brave and true patriot." Pravda, June 28, 1946.
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Old January 10th, 2007, 02:11 AM   #13
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YO what the hell does

IMO mean...???
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Old January 10th, 2007, 02:21 AM   #14
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When in doubt go to www.urbandictionary.com!

Il give u this one for free IMO = In My Opinion
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Old January 10th, 2007, 04:57 PM   #15
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Originally Posted by panj-delaavaraan View Post
Believe me, the poverty back then was NOTHING compared to what it is now and not even comparable to what it will be... Yet, Iran can give $500 million to Hibzullah.. How about fixing the economy first by stop giving away gifts that huge for no purpose when the people inside the country need the money themselves?
Yup, and besides the oil fields getting strained.. there are other domestic issues who needs to be taken care of.

Quote:
Air Pollution Tehran’s Big Problem

TEHRAN, Jan. 8--An official said on Monday air pollution is Tehran’s biggest environmental crisis.

Fathollah Ommi, the executor of the comprehensive plan to reduce Tehran’s air pollution, added that based on the latest statistics, last year 9,900 people in Tehran died on account of only two pollutants, namely NOX and PM10, which indicate that these two caused the deaths of 27 people per day.
Ommi referred to the environmental crisis as fatal and akin to collective suicide, ISNA reported.

Only during Oct. 23-Nov. 21, 2006, about 3,600 people in the capital have died of air pollution, either directly or indirectly. This shows that in only one month, 120 people died in Tehran as a result of air pollution,“ he said.
Also on Monday, Mohammad Hadi Haidarzadeh, advisor to Tehran’s mayor for environmental affairs, said Tehran’s air pollution control requires a huge revolution in the thinking of all officials.

Noting that Tehran’s residents are not happy about the environmental situation, the mayor’s advisor said, “One of the main reasons for this is air pollution and heavy traffic, which have drained Tehran’s residents of dynamism.“

Haidarzadeh, who heads Tehran Municipality’s Clean Air Headquarters, further said 4,500 people died of heart attacks during Oct. 23-Nov. 21, 2006.
“The deaths of about 80 percent of these individuals, either directly or indirectly, are linked to air pollution,“ he said.
“Unfortunately, the danger posed by Tehran’s air pollution crisis is no less than an earthquake, with the difference that the destructive effects of an earthquake are instantaneous, whereas air pollution kills innocent people gradually.“
He pointed out that Clean Air Week will be marked during January 11-19, instead of Clean Air Day.
“Every year, the Department of Environment has held special programs to mark Clean Air Day. This year, however, no serious activity is being observed,“ he said.
Haidarzadeh emphasized that in the past year, no serious action has been taken regarding the comprehensive plan and consequently a reduction in Tehran’s air pollution cannot be expected.
Mebe if they prioritized and spent some more money on Public transport instead of .... then they wouldn't need to ration OR subsidise petrol.

For instance they could build trams on the busy streets in Tehran with separate lanes and connect them to the closest metro stations. When it's more comfortable to use public transport, more people will actually use it instead of cars.

Last edited by Gilgamesh; January 10th, 2007 at 05:36 PM.
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Old January 10th, 2007, 05:36 PM   #16
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Heavily-Subsidized Fuel Hampering Economy

TEHRAN, Jan. 9--Heavy fuel subsidies have largely affected the economy with billions of rials being spent aimlessly on gasoline imports at a time when fuel smuggling from Iran to regional countries grows unabatedly.
“It is every government’s duty to pay subsidies to its people. However, in Iran, subsidies are yet to become targeted despite several attempts by the legislature to commit the government to a targeted subsidy allocation system,“ said Behnam Maleki, an economic expert.

He further said that political considerations apparently have hindered efforts to rectify the current subsidy system. The expert added that fuel subsidies are the worst kind of allowance being paid in Iran, stressing that cheap fuel has inspired creation of several fuel smuggling bands, whose illicit business has badly damaged the national economy.

“The only way out of the current dilemma is to make energy subsidies targeted,“ he said, proposing that fuel coupons be distributed in rural areas while, he said, fuel smart cards could be an appropriate option for urban population.

Economic experts and parliamentarians keep calling on the government to make subsidies targeted in a bid to curb excessive consumption.
Iran has one of the world’s highest wheat, power and fuel consumption rates.
A lawmaker said last week that subsidies must be targeted sooner or later, stressing that, otherwise, future generations will have to pay a very high price.

Soleiman Fahimi, a member of the Majlis Energy Commission’s presiding board, told ISNA that the issue should not remain a mere slogan.

“Given the growing consumption of heavily-subsidized goods in the country, the government would not be able to pay for the ever-increasing subsidies,“ he said, adding that the cash equivalent of subsidies should be allotted to the low-paid sections of the society.

The lawmaker said that the delay in making subsidies targeted is mainly due mainly to the lack of willpower among the officialdom. It has one of the world’s cheapest fuel prices with gasoline selling for less than nine cents per liter. Mineral water sells for 30 cents a liter here.

The country has the world’s second largest oil and gas reserves.
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Old January 10th, 2007, 06:47 PM   #17
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Even more reasoning why the government MUST make the day-to-day.. year-to-year running cost of a car higher to put ppl off buying cars as much... rationing is not the answer
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Old January 10th, 2007, 08:11 PM   #18
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^who the hell was talking to you? i clearly quoted someone lol!
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Old January 13th, 2007, 12:31 PM   #19
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A way to fix the problem is to build more refineries. tell me howmany refineries they have built during the past 27 years.
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Old January 13th, 2007, 10:57 PM   #20
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I think the main problem that shugs etc are referring to is that iran needs (and wants) more refineries but they don't have the capacity to do the job themselves. This is why they are urging China and Russia to invest.
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