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Economic crisis in the oil-producing state: Iran rationing gasoline

2019-11-15T10:14:00.437Z

It is one of the oil richest countries in the world. Nevertheless, petrol is now rationed and more expensive in Iran. However, the fuel costs only a fraction of the price at German gas stations.




The government in Iran has rationed gasoline while raising fuel prices. The reason is the continuing economic crisis in the country affected by US sanctions.

In the near future, Iranians with a state-of-the-art petrol card can only fill up to 60 liters of gas a month at a price of twelve cents a liter. Everything costs about 24 cents. This was announced by the Ministry, according to news agency Irna. So far, the gasoline price was the equivalent of ten cents.

Fear of protests

For some time, President Hassan Rohani's government has wanted to increase gasoline prices, but has kept postponing it for fear of worsening inflation - and nationwide protests. The price of gas is considered in Iran as an inflation driver. After an increase, everything in the country would be more expensive.

Because of the renewed US sanctions in the nuclear dispute, the country has been in an acute economic crisis for months. Particularly affected is the oil export as the main source of income of the country. Exports of the world's fourth largest oil producer have dropped from 2.8 million barrels a day to less than one million. Accordingly, the national currency Rial is worth only half.

Iran's President Rohani describes US sanctions as "economic terrorism," which the country will tackle with "pride and resistance," despite the acute crisis. The gasoline rationing and price increase, however, show that he too can not make the economic crisis beautiful.

Source: spiegel

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