Following a report that Iran will ration gasoline on May 2, long lines have formed outside gas stations, while an official says the timing of the move is not final.

Wednesday morning, Tasnim news agency close to Iran’s Revolutionary Guards reported that gasoline, at the heavily subsidized price of 20 cents per gallon, will be rationed at 16 gallons per month for each driver.

Immediately after the news was published long queues formed in the streets as drivers tried to fill their tanks before rationing goes into effect.

Later in the day, an official of the interior ministry announced that people should only follow official news and no decision has been made on both the timing and the limit of rationing. This statement fell short of a full denial and the official said that the issue of rationing is being discussed.

Oil minister Bijan Zanganeh denied the news about rationing on Wednesday, although in January he had insisted that the government should ration gasoline.

Reports from the northern province of Gilan also said that long lines are forming at gas stations, although officials there have announced there are no problems with distribution of gasoline.

Iranians consume more than 25 million gallons of gasoline a day and enjoy the lowest price in the world. The government spends more than $40 billion a year on fuel subsidies.

Source » radiofarda