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Pre-election gas estimates giving Iran a headache

Pre-election estimates for gas demand were encouraging - not anymore

Pre-election gas estimates giving Iran a headache
Pre-election gas estimates giving Iran a headache

While some will tell you rules are made to be broken, a promise has always been a promise. However, this is one cliché which appears to have passed by the majority of politicians.

 

A politician will perhaps say anything to get elected, but this short sightedness can create a whole host of problems down the line. Pre-election estimates for the Iran gas demand were encouraging, optimistic even – and now it seems a long way off the truth.

 

The new Iran Oil Minister Masoud Mir-Kazemi was this week quoted as saying there will be gas shortages in the country during winter and huge budgetary deficits for the projects expected to make up that shortfall – despite previous reports to the contrary.

 

Samuel Ciszuk, HIS Global Insight Middle East analyst explained the problem: “The previous optimistic estimates—likely a product of the government’s re-election campaign—resulted in no allocations for diesel imports in this year’s budget, meaning that the already strained Iranian state finances will suffer.”

 

Read Ciszuk’s full analysis here.

 

If the country’s gas shortages do occur in the winter, then it will be another used, abused, but slightly modified cliché on the lips of its people – brutal honesty is always the best policy.

 

Staff Writer

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