Petrol Consumption Towards Unsustainable
Development: Iranian Case Study
Author(s)
S. B. Imandoust
Abstract
One of the most important economic problems in Iran is petrol consumption. In
fact, one litre of petrol in Iran is cheaper than one bottle of drinking water. Every
year the government pays a large sum of money for imported petrol as well as
petrol subsidies. Thus people consume it in an inefficient manner and petrol
smuggling is a very popular job especially near boundaries. In the current Iranian
year (21st March 2006–20th March 2007) about seventy million litres of petrol
were consumed daily in Iran (the biggest petrol importer in the Middle East).
This research reports the trend of petrol consumption during the last two decades
and studies different scenarios for making decisions about petrol pricing and
consumption. Finally some suggestions are presented for correcting the petrol
consumption pattern.
Keywords: petrol consumption, unsustainable development, petrol pricing.
1 Introduction
One of the most important threats against sustainable development in Iran is
energy subsidies. About 17.5% of GDP (gross domestic production) is allocated
to energy subsidies every year. More than 25% of GDP is allocated to total
subsidies in Iranian economics. The petrol price in Iran is about 9 cents per litre,
so people consume it in a uneconomic manner. Official data shows during the
last five years petrol consumption increased 10% yearly. In the current year
about 70 million litres have been consumed daily by Iranians [1]. From the
environmental point of view this level of petrol consumption caused high levels
of air pollution especially in big cities and because of that Tehran (capital of
Iran) is one of the most air polluted cities in the world. Because of its cheap price
smugglers have high motivation for petrol smuggling. Although Iran is the fourth
Keywords
petrol consumption, unsustainable development, petrol pricing.
Related Book
Other papers in this volume
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