Long Petrol Queues Frustrate Tunisians

 Cars queue for fuel at a gas station in Tunis, Tunisia October 11, 2022. REUTERS/Jihed Abidellaoui
Cars queue for fuel at a gas station in Tunis, Tunisia October 11, 2022. REUTERS/Jihed Abidellaoui
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Long Petrol Queues Frustrate Tunisians

 Cars queue for fuel at a gas station in Tunis, Tunisia October 11, 2022. REUTERS/Jihed Abidellaoui
Cars queue for fuel at a gas station in Tunis, Tunisia October 11, 2022. REUTERS/Jihed Abidellaoui

Frustrated motorists queued in long lines outside Tunisian petrol stations on Tuesday even after the energy minister had said a shortage would end on Monday with a new delivery of fuel.

Many petrol stations started running out of fuel over the weekend as imports slowed and national supplies dropped, leading to lines of cars stretching kilometers in some places, causing bad traffic in Tunisian cities.

Mohamed Neji, who had been waiting for an hour and a half in the Ariana district of Tunis, told Reuters he didn’t go to work on Tuesday.

“We’ve become like refugees in our own country,” he added, alluding to other shortages that have struck Tunisia in recent weeks including flour, sugar, butter, milk and cooking oil.

Tunisia faces a crisis in public finances. The influential labor union, which has branches in government and national supply sectors, says the state has struggled to pay for imports of goods that it sells at subsidized rates.

President Kais Saied, who moved to rule by decree after shutting down parliament last year and expanding his powers with a new constitution, has blamed hoarders and speculators for goods shortages.

Tunisia hopes soon to finalize a staff-level agreement with the International Monetary Fund for a rescue program that could also unlock billions of dollars in bilateral support from other countries.

However, it is not clear if it can push through the reforms that the IMF wants, including reductions in subsidies that are opposed by the labor union.

Tunisia’s petroleum reserves are sufficient for one week, down from the usual 60 days of strategic reserves, said Salouan Smiri, a senior official in the oil section of the UGTT union.

Near petrol stations in Tunis on Tuesday there was furious honking from cars as lines of waiting motorists blocked traffic lanes, with vehicles crammed into the spaces around.

Cars at many petrol stations were only allowed to fill up to 30 dinars ($9) worth of petrol, or about 13 liters. At some, petrol station workers were distributing petrol from plastic bottles to ease congestion at the pumps.

“I waited my turn for two hours. It’s a nightmare we live every day. I no longer have confidence in the state. It’s bankrupt, but they in government keep telling us everything is available,” said Zara, a woman waiting in Ariana.



Iran's Rial Hits a Record Low, Battered by Regional Tensions and Energy Crisis

An Iranian trader counts money in Tehran's Grand Bazaar. (Reuters)
An Iranian trader counts money in Tehran's Grand Bazaar. (Reuters)
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Iran's Rial Hits a Record Low, Battered by Regional Tensions and Energy Crisis

An Iranian trader counts money in Tehran's Grand Bazaar. (Reuters)
An Iranian trader counts money in Tehran's Grand Bazaar. (Reuters)

The Iranian rial on Wednesday fell to its lowest level in history, losing more than 10% of value since Donald Trump won the US presidential election in November and signaling new challenges for Tehran as it remains locked in the wars raging in the Middle East.

The rial traded at 777,000 rials to the dollar, traders in Tehran said, down from 703,000 rials on the day Trump won.

Iran’s Central Bank has in the past flooded the market with more hard currencies in an attempt to improve the rate.

In an interview with state television Tuesday night, Central Bank Gov. Mohammad Reza Farzin said that the supply of foreign currency would increase and the exchange rate would be stabilized. He said that $220 million had been injected into the currency market, The AP reported.

The currency plunged as Iran ordered the closure of schools, universities, and government offices on Wednesday due to a worsening energy crisis exacerbated by harsh winter conditions. The crisis follows a summer of blackouts and is now compounded by severe cold, snow and air pollution.

Despite Iran’s vast natural gas and oil reserves, years of underinvestment and sanctions have left the energy sector ill-prepared for seasonal surges, leading to rolling blackouts and gas shortages.

In 2015, during Iran’s nuclear deal with world powers, the rial was at 32,000 to $1. On July 30, the day that Iran’s reformist President Masoud Pezeshkian was sworn in and began his term, the rate was 584,000 to $1.

Trump unilaterally withdrew America from the accord in 2018, sparking years of tensions between the countries that persist today.

Iran’s economy has struggled for years under crippling international sanctions over its rapidly advancing nuclear program, which now enriches uranium at near weapons-grade levels.

Pezeshkian, elected after a helicopter crash killed hard-line President Ebrahim Raisi in May, came to power on a promise to reach a deal to ease Western sanctions.

Tensions still remain high between the nations, 45 years after the 1979 US Embassy takeover and the 444-day hostage crisis that followed. Before the revolution, the rial traded at 70 for $1.