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Supply Side Strategies Cannot Manage Growing Gasoline Demand

Supply Side Strategies Cannot Manage Growing Gasoline Demand
Supply Side Strategies Cannot Manage Growing Gasoline Demand

As long as gasoline demand is not managed efficiently, other strategies on the supply side such as importing the fuel, building new refineries or upgrading old facilities will not yield the desired result, a member of Majlis Energy Commission said.
“Not only do supply-oriented policies like increasing the number of crude processing firms require massive investment, but they are also long-term solutions and cannot address gasoline shortage in the short run,” Abdolali Rahimi Mozaffari was also quoted as saying by ILNA.
Supply-side management approaches, including plans to import the fuel, should be replaced with demand-oriented management plans, such as getting rid of dilapidated gas guzzlers that have outlived their usefulness, he added.
Mozaffari said the more refineries are constructed, the more demand will be created and the vicious cycle will never end.

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