Tuesday, November 26, 2002

Economics in every day life
AFP astounds with Waste, trafficking force oil-rich Iran to import fuel. The article has lots of info on old cars, smugglers, and inadequate refineries, but then mentions:
But as long as a litre costs 500 rials (six US or European cents), Iranians are not too worried about fuel consumption or waste.

Each day, 250,000 litres are lost in service stations across the country.

"No one pays attention when they fill up their tank, sometimes up to a litre is spilled on the ground," one station attendant said.
...
Each litre therefore costs the state about three times more than it does the consumer.
...
Until then, experts agree the solution is to raise prices, but all understand the risk of social unrest tied to a brutal hike.