2007 gasoline rationing plan in Iran

The 2007 gasoline rationing plan in Iran was launched by president Mahmoud Ahmadinejad's cabinet to reduce that country's fuel consumption.

Although Iran is one of the world's largest producers of petroleum, rapid increases in demand and limited refining capacity have forced the country to import about 40% of its gasoline, at an annual cost of up to USD $7 billion.

[1][2] The fuel rationing originally triggered discontent in Iran, but, according to analysts quoted in the Western news media, the Iranian government is hoping that reducing gasoline imports will help insulate the country from international pressure related to its nuclear program.

"We will greatly suffer if they (foreign countries) suddenly decide not to sell us fuel," said Iranian political analyst Saeed Leylaz.

The fuel rationing triggered widespread discontent in Iran, but if it succeeds in reducing the amount of imported gasoline, it could help insulate the country from international pressure related to its nuclear program.

[8] In mid-November 2008, the prices super gasoline in the neighboring Afghanistan, Armenia, Azerbaijan, Pakistan, Turkey and the UAE were 105, 108, 74, 84, 187 and 45 cents per liter.

Smugglers are using "lakes of fuel", underground pipelines to neighboring countries and oil tankers on the Shatt al-Arab waterway.

[citation needed] Facilities such as the Martyr Rajai Port Complex in Hormuzgan province are reportedly used by the IRGC to export state subsidized gasoline outside the country.

[12] Iran says its naval security forces have confiscated ten oil tankers smuggling 4,600 tons of Iranian fuel out of the Persian Gulf in 2008.

[citation needed] As of 2012, smuggling to Pakistan and Afghanistan continues unabated because of price differential with these countries and because of the steep devaluation of the Iranian rial.

[15] According to National Police Chief Esmaeil Ahmadi-Moqaddam, before the implementation of the subsidy reform plan, 20 million liters of fuel were trafficked out of the country.

[18] Iran decided inexplicably to abandon the Iranian subsidy reform plan after 2014, this in contravention of the goal to stop fuel smuggling with neighboring countries because of the very large price differentials therein.

[22] By July 2010, Iran had managed to save 11 billion dollars since the rationing began which has spared the need for excessive imports of the commodity.