As I discussed in May, the government of Iran has spent the last year trying to figure out how to solve its gas problem. Despite its large oil reserves, Iran has very little refining capacity, and thus is forced to import gasoline. For years, the government has been subsidizing these imports, keeping the prices very low and doing great harm to the national treasury. Since sometime in 2006, they've been thinking of easing off on these subsidies while simultaneously putting in place a gas purchasing cap.
This week, they enacted a cap.
It did not go well.
With less than two hours notice, the government or Iran announced to its citizens that they are now limited to 100 liters of fuel (26 gallons) per month.
Riots broke out soon after, and twelve gas stations were torched in Tehran.
"Guns, fireworks, tanks, [President] Ahmadinejad should be killed," chanted angry youths, throwing stones at police.
Some Iranian members of parliament are calling for a relaxation on the cap, citing the improbably short notice the government gave. The government of Iran is, in turn, presumed to be trying to cut down on its fuel imports before someone (like, say, the US) decides to cut off the gas supply by way of applying pressure against Iran about its nuclear program, interference in Iraq, funding of Hezbollah, or anything else that strikes their fancy.