Monday, August 27, 2007

Iran's Gasoline Crisis

Some things strike me as ironic, or, at least, surprisingly contradictory. Such is the case with the gasoline rationing currently underway in Iran. Although Iran exports oil, it has almost no refining capacity, and so much import is refined oil and gas.

Now, it just so happens that growth in capacity ended when the Shah was deposed, meaning that in this totalitarian state the religious leadership is likely most at fault. Of course, we have our own examples of this, and it's also government's fault: for example we have plenty of oil, only it can't be extracted because of the environmentalist lobby.

My point? Not much, really, except that government has once again proven its incompatibility and sheer incompetence with economic issues.

No comments: