Peak Oil is You

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Page added on June 29, 2007

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Governments in both countries have pledged to do all they can to hold gasoline prices down. But in Iran, the government strictly limits prices and provides subsidies to oil companies in order to hold them down. The official price of gasoline for the owner of a private car is 38 cents per gallon for the first 26 gallons of fuel.

As economists have warned, such tinkering can limit supply of necessities such as gasoline. It has done precisely that in Iran. Though the country is the second-biggest oil exporter in the Organization of Petroleum Exporting Countries, it does not have enough refineries to meet domestic need. About half of the refined gasoline used in Iran is imported.

The Intelligencer

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