Source:
The Guardian6.30pm
Ahmadinejad faces backlash as Iran brings in petrol rationingRobert Tait in Tehran
Wednesday May 23, 2007
Guardian UnlimitedIran is to introduce petrol rationing in two weeks in a move that
belies its status as the world's fourth largest oil exporter and
threatens to trigger a popular backlash against its president,
Mahmoud Ahmadinejad.
The country's motorists — used to some of the cheapest fuel in
the world — will be restricted to three litres a day under a scheme
to cut fuel consumption and reduce the burden on Iran's struggling
economy of providing subsidised petrol.
The development risks provoking popular discontent among a
population already restive over rising prices amid an inflation rate
estimated at 20% to 30%. It also contradicts Mr Ahmadinejad's
pre-election promise to reduce poverty and bring Iran's oil wealth
to "people's tables".
But the president is being pushed to act to plug large budget
deficit caused by fuel subsidies, along with fears that spiralling
demand could exhaust Iran's oil-exporting capacity within 15 years.
The ration plan, earmarked for June 7, was to start this week but
was delayed amid difficulties in smart card technology at filling
stations. Worries over political consequences have prompted
speculation that the scheme may be postponed indefinitely.
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