World Wide Petrol Woes

Unrest grows amid gas rationing in Iran INTERNATIONAL HERALD TRIBUNE - By Nazila Fathi and Jad Mouawad - June 28, 2007 TEHRAN: Unrest spread in Tehran on Thursday, the second day of gasoline rationing in oil-rich Iran, with drivers lining up for miles, gas stations being set on fire and state-run banks and business centers coming under attack. Dozens were arrested, and the Tehran police chief, Ismail Ahmadi Moghaddam, complained to reporters that the police had been caught unaware by the decision to ration fuel. The anger posed a keen threat to President Mahmoud Ahmadinejad, who was elected two years ago on a platform of bringing income from oil to the nation's households. Instead, even though Iran is one of the world's largest producers of crude oil, it has been forced to import about 40 percent of its gasoline at an annual cost of $5 billion to make up for shortfalls in its archaic refining industry. Some analysts said the decision to ration gasoline was intended to prepare for the possibility of more United Nations economic sanctions as a result of concern over Iran's nuclear program. - - - - http://www.iht.com/bin/print.php?id=6403091 Iran fuel rations spark violence BBC NEWS - June 27, 2007 Several petrol stations have been torched in the Iranian capital Tehran, after the government announced fuel rationing for private vehicles. Windows were smashed and stones thrown at the stations, and there was traffic chaos as motorists queued to buy fuel. Iranians were given only two hours' notice of the move that limits private drivers to 100 litres of fuel a month. Despite its huge energy reserves, Iran lacks refining capacity and it imports about 40% of its petrol. Iran has a large budget deficit largely caused by fuel subsidies and the inflation rate is estimated at 20-30%. The BBC Tehran correspondent Frances Harrison says Iran is trying to rein in fuel consumption over fears of possible UN sanctions over its nuclear programme. Iran fears the West could impose sanctions on its petrol imports and cripple its economy. - - - - http://news.bbc.co.uk/2/hi/middle_east/6243644.stm Top gas gouger? The [US and State's] government! States, feds taking chunk bigger than oil companies WORLDNETDAILY - By Alyssa Farah - June 19, 2007 - - - State, local and federal taxes make up about 20 percent of the cost paid at the pump, according to Conoco Phillips, an international, integrated energy company. So, while many tend to assume major gas companies are hugely profiting when gas prices peak, this may not be the case. According to the U.S. Energy Information Administration, when the average price of regular unleaded gas peaked at $3 per gallon in 2006, most major companies were profiting only about 10 cents per gallon on refining and marketing options, while the federal tax alone is as much as 18.4 cents per gallon. As of March, the national average gasoline tax is 45.8 cents. New York has the highest gas tax at 60.8 cents at the pump, with Hawaii just behind costing 60.2 cents per gallon, according to the American Petroleum Institute. - - - - http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=56260 Western Cape hit by gas shortages SOUTH AFRICAN PRESS ASSOCIATION - June 21, 2007 Johannesburg, South Africa - A severe shortage of liquefied petroleum gas has crippled the gas trade in the Western Cape, the Cape Argus reported on Thursday. Its website quoted retailers as saying the gas supply had run out and they were not sure when the situation would be resolved. At the root of the trouble was the Chevron refinery, which supplies bulk buyers BP and Afrox in the Western Cape. "There is now absolutely no product coming in for the next week or so," said one gas supplier. The supplier, who asked not to be named, said local producer Chevron "needs to explain themselves to the industry and their consumers". Restaurants and consumers who converted all their cooking and heating appliances to gas could be hit hard by the shortage. - - - - http://www.mg.co.za/articlePage.aspx?articleid=312007&area=/breaking_news/breaking_news__business/ Oil demand ‘rising faster than expected’ FINANCIALTIMES of LONDON - By Ed Crooks - June 12, 2007 World oil demand is rising faster than previously expected while non-Opec supply is growing more slowly, the International Energy Agency has said in its latest monthly assessment of the market. The rich countries’ energy watchdog warned on Tuesday of growing tightness in oil supplies in the second half of the year, and urged the Organisation of the Petrolem Exporting Countries to raise its output. David Fyfe, an analyst at the IEA, said: “We would very much hope that Opec production is at its seasonal low at the moment. --- We definitely do need more crude oil.” - - - The report estimated that world oil stocks could drop by 1m-1.5m barrels a day in the third quarter, which it said “would push forward stock cover down towards the low levels seen when prices accelerated higher in 2004. That is, by itself, a concern.” Opec officials have played down the possibility of any increase in production before the next ministerial meeting in Vienna on September 11. - - - - http://www.ft.com/cms/s/76a4c516-18d6-11dc-a961-000b5df10621.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. 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