Energy
0

Gasoline Rationing Could Help Reduce Consumption in Iran

Now that currency rates have shot up by four times compared to 2015, those who were against raising gasoline prices have come to the conclusion that selling gasoline at 7 cents per liter simply does not make sense
Gasoline Rationing Fuel Could Reduce Consumption in IranGasoline Rationing Fuel Could Reduce Consumption in Iran

The Majlis Research Center has announced that implementing the fuel rationing system saved the country as much as $100 billion between 2007 and 2015. 
“In 2006, the year before gasoline rationing system started, daily gasoline use was 74 million liters, of which 20 million liters were imported. A year later consumption declined by10 ml/d and the National Iranian Oil Company restricted imports,” the MRC said as reported by Energy Today.
Of the total savings ($100 billion), close to $75 billion was (saved) due to decline in domestic use and imports, the report said, noting that $25 billion was saved because some car owners started filling up their tanks with alternative fuels, namely compressed natural gas that was much cheaper than gasoline.
Gasoline rationing started in 2007 allowing motorists to buy 60 liters of subsidized fuel a month with a special card at 7,000 rials (70 cents) per liter (at the time one USD was worth 10,000 rials). 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com