In a strange twist of fate, Iranians are chanting “Death to Ahmadinejad!” in the streets of Tehran.
What gives? The Iranian population has been enjoying 34-cents-per-gallon fuel for years. But beginning last week, the Iranian guv’mint put a gas-rationing program into place. Iran -- the world’s third-largest oil producer -- imports over 40% of its gasoline because its current refining capabilities… well… suck.
Iran’s understanding of market economics isn’t much better. As usual, a chart is worth a thousand words:
Our friend John Mauldin estimates that 15% of Iran’s GDP is spent keeping gas cheap. Ahmadinejad is stuck. If his gas-rationing program continues, there will be blood in the streets. If he abandons the ration and drops subsidies, there will be blood in the streets.
What gives? The Iranian population has been enjoying 34-cents-per-gallon fuel for years. But beginning last week, the Iranian guv’mint put a gas-rationing program into place. Iran -- the world’s third-largest oil producer -- imports over 40% of its gasoline because its current refining capabilities… well… suck.
Iran’s understanding of market economics isn’t much better. As usual, a chart is worth a thousand words:
Our friend John Mauldin estimates that 15% of Iran’s GDP is spent keeping gas cheap. Ahmadinejad is stuck. If his gas-rationing program continues, there will be blood in the streets. If he abandons the ration and drops subsidies, there will be blood in the streets.
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