Confusion in Iran over non-rationed petrol quota

Jul 3, 2007, 11:55 GMT

Tehran - Contradictory remarks have been made by Iranian officials over the non-rationed petrol quota, the Tehran press reported on Tuesday.

Since last Wednesday, petrol in Iran has been rationed to 100 litres per month for normal cars, 300 litres for government cars and 800 litres for taxis, with a litre of normal petrol costing 0.108 dollars and 0.151 dollars for a litre of super petrol.

Earlier, the government had announced additional quotas at higher or floating rates would be allocated to people whose livelihoods depend on their cars.

President Mahmoud Ahmadinejad said Sunday that no extra quota would be necessary if all cars switched from petrol to the compressed natural gas system (CNG) to further decrease the need for petrol imports.

Oil Minister Kazem Vaziri-Hamaneh then said on Monday that the government would decide on the price of the non-rationed petrol quota within the next few months.

On Tuesday, however, Interior Minister Mostafa Poumohammadi said there would be no need for extra quotas, and organizations needing extra petrol should explain their situation to the Oil Ministry.

The Iranian parliament is in favour of the extra quota but says that those needing more fuel should pay for it accordingly.

Observers believe that despite initial announcements the government prefers not to introduce a price for the extra quota to avoid an inflation increase.

Despite strict government control, prices - and not just taxi rates - have already been increasing following the implementation of the rationing plan.

The rationing plan is very unpopular in Iran, although since its introduction the capital Tehran has seen a visible decrease in traffic congestion, improvement in air quality, a 20-per-cent drop in traffic jams, and a 30-per-cent reduction of accidents.

Observers believe the plan could dent Ahmadinejad's popularity ahead of next March's parliamentary elections or even negatively affect his chances of being re-elected as president in 2009.