Rooz

The Failure of the Gasoline Rationing Project

Arash Samii - 2007.08.16

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While a report by an international energy agency speaks of the failure of Iran’s gasoline rationing scheme, and even many Majlis (Iran’s Parliament) representatives have called for modifying the scheme despite Ahmadinejad’s wishes, a trade union leader in Tehran declared that many car repair shops, parking and carwash owners faced rising unemployment and some were even on the verge of bankruptcy.

Alireza Raasi, the head of the trade association for car-repair shops, parking and car-wash owners in Tehran told reporters yesterday, “Business has fallen to our trade due to the gasoline rationing scheme. Many people working in the 546 operating repair shops in Tehran have been laid off because of the gasoline rationing scheme.” He also complained about the worsening parking situation explaining that because of the parallel work carried on in the construction of parking lots and garages, there was now a dual rate for parking in the capital. “The president’s announcement freezing current rates has lead to the closure of many parking lots and garages and or them suffering financial losses,” he said.

Even though president Ahmadinejad had requested the Majlis not to engage in a public discussion over a scheme to provide unlimited gasoline (despite the rationing plan), parliamentarians have been insisting on providing unlimited gasoline to the public. In this regard, the remarks of Majlis deputy Speaker Bahonar regarding providing price-unregulated gasoline without any ceiling were attacked by other parliamentarians. Eshrat Shayegh from Tabriz spoke of a survey undertaken among the legislators by Majlis Speaker Haddad Adel which indicated that the gasoline rationing scheme had produced more headaches for the villages and small towns than the larger towns and cities across Iran. According to him, the survey carried out by the legislators indicated that providing the gasoline needs of the villagers and smaller towns took priority over others.

The survey also indicated that the absence of a public transportation system in the villages and smaller towns, and the longer distances between gas stations has led to greater fuel problems in the provinces particularly for moving agricultural produce and motor-bike users. Sixty five percent of the legislators that took part in the survey said that providing the fuel needs of the villagers and small towns took priority in the gasoline problems of the villagers and residents of small towns. A member of the Article 90 Committee of the Majlis said, “The need to seriously and comprehensively monitor taxis, taxi agencies and the rations of government vehicles had the support of 46 percent of the participants while improving the city and inter-city transportation system had the support of 43 percent of the Majlis members.

Hashemi, the head of the Industries and Mines committee of the Majlis said that because the rate of gasoline beyond the ration amount had not been announced by the government, people have resorted to unlawful tactics. “Instead of directing and encouraging people to engage in unlawful activities, it would serve us better if the government, by pursuing the regulations of the Majlis, would announce the cost of producing gasoline that has no added value and which will be available in controlled quantities. Limiting anything is a way of controlling it,” he added.

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