Thursday, April 27, 2006

Gas Prices to Climb In Iran, Could Hit A Whole Dollar!

Author: Nick
Category: Money

While pump prices in the United States have risen over 40 cents a gallon in the last month alone, Iranians are preparing for the impact of having to pay more than 40 cents a gallon total for their gasoline.

Despite being number two in the world for oil reserves, Iran could soon see rising gas prices as its government gets ready to stop subsidizing and start rationing it. The reason for the ration plan, says the Iranian government, is that dirt cheap gas is causing heavy congestion and straining Iran’s limited oil refining capabilities. Iran’s oil refineries already only produce just over half of the country’s gas, and the government is tired of having to rely on importing fuel from other nations.

It’s hard to imagine that a country like Iran has problems being self-sufficient in energy. Then again, at the rate prices are climbing in the U.S., it might soon be cheaper to drive to Iran, fuel up there, and drive all the way back!

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