Iran's Gas Rationing Sets Off Violence

The Associated Press
Wednesday, June 27, 2007; 1:59 PM

TEHRAN, Iran -- Iranians smashed shop windows and set fire to a dozen gas stations in the capital Wednesday, angered by the sudden start of a fuel rationing system that threatens to further increase the unpopularity of President Mahmoud Ahmadinejad.

Police were sent to guard some stations after the violence, and there was calm during the day as motorists lined up to fill their tanks under the new restrictions.

The government had been warning for weeks that rationing was coming, but the announcement of its start just three hours before the plan took effect at midnight Tuesday startled people and sent them rushing to get one last fill-up.

The rationing is part of a government attempt to reduce the $10 billion it spends each year to import fuel that is then sold to Iranian drivers at less than cost, to keep prices low.

Iran is one of the world's biggest oil producers, but it doesn't have enough refineries, so it must import more than 50 percent of the gasoline its people use. The government says money saved from subsidies can go to building refineries, improving public transit and creating jobs.

But a hike in gas prices last month and now the rationing are feeding discontent with Ahmadinejad, who was elected in 2005 on a platform of helping the poor and fixing Iran's ailing economy. His failure to do so has sparked widespread criticism.

"This man, Ahmadinejad, has damaged all things. The timing of the rationing is just one case," said Reza Khorrami, a 27-year-old teacher who was among those lined up at one Tehran gas station late Tuesday.

Iranians are accustomed to gasoline at rock bottom prices. After a 25 percent hike in prices imposed May 21, gas sells at the equivalent of 38 cents a gallon.

But rationing will limit private drivers to only 100 liters (26 gallons) of fuel a month at the subsidized price. Taxis can get 211 gallons. Anything more than that will have to be bought at a higher price, which has yet to be announced.

The short notice of the plan's start appeared to be aimed at preventing a rush to hoard fuel. Still, long lines of cars, some up to a half mile, formed after the announcement, and the mood turned violent in places.

Drivers attacked some stations after managers stopped selling fuel before midnight, saying they had to recalibrate their pumps for rationing.

"This made people who were waiting in line angry, so they attacked the pumps," said a witness, Rasoul Enayati.

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