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Old 06-23-2006, 07:46 PM   #1
surefireinvest

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Default Iran to Start Gas Rationing... In Iran.
Despite being the second biggest producer in the Organization of the Petroleum Exporting Countries, Iran has relied heavily on gasoline imports for many years.

It lacks refining capacity after directing most of its oil revenues into social spending. It now imports more than 40 percent of its 70 million litters per day (440,000 barrels per day) of gasoline consumption.

Most of this comes from western Europe, with trading house Vitol the leading supplier, market sources said. India has also featured as a key exporter, at times supplying up to 25,000 bpd. Sounds like not only Iran could pressure on the western world about stopping oil exports,
but that the western world could put pressure on Iran as well, for example by imposing an embargo, preventing that any more gasoline is exported to Iran.
So that irans tanks cannot move anymore from A to B and irans Airforce stays on the ground

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Old 06-23-2006, 08:03 PM   #2
thighikergove

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I like how Iran is threatening to increase oil prices but all the while they have no concept of economics or the value chain. Genius.
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Old 06-23-2006, 08:33 PM   #3
mXr8icOB

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It takes more infrastructure to develop a nuclear fuel processing industry than to develop oil refinery industry. How is that an oil rich nation such as iran would pursue a massive uranium enrichment program when they don't even have sufficient refinery capacity to meet their domestic needs?

This is weird.
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Old 06-24-2006, 04:09 AM   #4
EbrsaRynleot

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That's the problem with gasoline subsidies/price controls. It makes it cheaper for people so they use more but it removes the profit motive so suppliers never build new refineries.
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Old 06-24-2006, 05:37 AM   #5
BundEnhamma

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I believe Iran, like most middle-east countries, has a government monopoly on oil/gasoline imports and exports. The government doesn't invest enough on refineries while the private sector is locked out of that business so they end up importanting it. Normally, to keep the masses happy the price of gas is set artificially low to make it more affordable though this typically results in shortages since the black market will buy tons of gas then sell it for full price in other countries.
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