Iran Bans Stories About Gas Rationing; Mullahs Worried

Iran's news outlet has banned coverage of the ongoing gas rationing and subsequent rioting and demonstrations. All the news that's fit to serve the interests of the mullahs and Ahmadinejad.

Angry motorists have reacted violently to the curbs, attacking up to 19 petrol stations in the capital, Tehran.

There are still long queues outside filling stations.

The authorities switched off the mobile text messaging system in Tehran overnight to prevent motorists from organising more protests.

The BBC's Frances Harrison in Tehran said that many Iranians are already on edge because of a recent sharp rise in the cost of living.

During Wednesday's unrest, motorists threw stones and shouted slogans against President Mahmoud Ahmadinejad.

Despite the ban on negative reporting by Iran's security council, reformist papers are still complained about the abrupt way in which it was announced, saying even the police chief and the petrol station owners were not aware of the move.

Not all the Iranian government officials are happy with the situation. Some are calling for an end to the rationing. Despite being the #2 producer of oil, it had to import nearly $5 billion worth of refined gasoline last year alone.

A lack of refining capacity means that despite Iran being OPEC's number two oil exporter, it had to spend five billion dollars importing petrol in the last financial year ended March.

"Paying around 10 billion dollars from the oil stabilisation fund to compensate for the cost of importing petrol in the past two years and then submitting to petrol rationing is the mistake," former moderate MP Hossein Marashi wrote in the Ham Mihan newspaper.

The fund was set up by Ahmadinejad's reformist predecessor Mohammad Khatami, aiming to save oil revenues for a rainy day.

"Ten billion dollars is great deal of money for a country that is suffering from lack of investment and unemployment," Marashi said. "If this parliament had not frozen the annual price hike for petrol we would not be facing the petrol rationing now."

Prices had remained set at 800 rials (around eight cents) for the past three years and only went up to 10 cents last month.

Iran estimates that without rationing, fuel imports could reach 9.5 billion dollars a year. It produces 44.5 million litres of petrol a day but consumption is 79 million.