3 weeks ago
Iran Scraps Fuel-Pricing Pilot Amid Petrol Shortages and Long Lines
Iran is having fuel shortages and people are waiting in long lines at petrol stations.
The government tested a new fuel system in the city of Kerman.
The plan would have increased the amount of fuel people could buy.
However, fuel bought above the new limit would have been much more expensive.
It would have cost 872,000 rials per liter, or about 46 cents.
Many people in Kerman became worried when they saw the higher price.
The government ended the test program last week.
Officials said poor management caused the program to fail, while people feared similar price increases elsewhere in Iran.
A pilot fuel system in Kerman was intended to expand the overall quota.
Purchases above the new limit would have cost 872,000 rials per liter, roughly 46 cents.
The government abruptly canceled the pilot program last week.
Officials blamed mismanagement for the program’s failure.
The price increase caused alarm in Kerman and raised fears of nationwide fuel hikes.
- Who
- The Iranian government and people buying fuel in Kerman are involved.
- What
- A fuel-pricing and quota pilot program was tested and then canceled amid shortages and long lines.
- Where
- The pilot was tested in Kerman, a city in southern Iran.
- When
- The government scrapped the pilot program last week.
- Why
- Officials said mismanagement caused the pilot’s failure; the steep proposed price increase also caused public alarm and fears of wider fuel hikes.
Official explanation
Public concerns
Why the pilot failed
Official explanation
Officials said mismanagement was responsible for the program’s failure.
Public concerns
The steep price increase had already caused significant alarm in Kerman.
Risk of wider price hikes
Official explanation
The pilot was presented as a system that would expand the overall fuel quota.
Public concerns
The proposed price fueled concerns that similar increases could be introduced across the country.
Key facts
- Pilot location
- Kerman, southern Iran
- Proposed price
- 872,000 rials per liter
- Approximate dollar value
- Roughly 46 cents per liter
- Quota change
- The system would have expanded the overall fuel quota
- Additional purchases
- Fuel bought above the new limit would have faced the higher price
- Program status
- Abruptly scrapped by the government last week
- Official explanation
- Officials attributed the failure to mismanagement
Sources
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