October 28, 2010 | Press Release

House Foreign Affairs Committee Advances Gasoline Sanctions on Iran

House Foreign Affairs Committee Advances Gasoline Sanctions on Iran


Washington, D.C. (October 28, 2009) – The Foundation for Defense of Democracies praised the House Foreign Affairs Committee for marking up legislation targeting the Iranian regime’s ability to import gasoline, the Iran Refined Petroleum Sanctions Act (IRPSA).

IRPSA was introduced by Rep. Howard Berman (D-CA), chairman of the House Foreign Affairs Committee, and has been cosponsored by more than 75% of House Members. It authorizes the president to sanction any person or entity that sells gasoline and other refined petroleum products to Iran. It also allows the president to sanction insurance, reinsurance, and shipping companies that facilitate this trade. The Foreign Affairs Committee approved it by voice vote today.

“This legislation targets the Iranian regime’s economic Achilles’ heel—Iran’s need to import up to 40% of the gasoline it consumes because the regime has failed to invest in internal refining capacity,” said FDD Executive Director Mark Dubowitz. “Gasoline sanctions may not be the silver bullet that ends the regime’s illegal nuclear weapons program, but they can be silver shrapnel which can severely wound the regime.”

“It’s clear that just the threat of gasoline sanctions has put the regime on the defensive, with the Iranian parliament approving a cut to Iran’s generous energy subsidy to curb demand,” added Dubowitz, who leads FDD’s Iran Energy Project. “Any decision by the regime to cut gasoline subsidies is likely to drive up inflation, compound Iran's enormous economic difficulties, and further inflame a population that is simmering with deep resentment for a regime that has lost all political legitimacy. By fanning these flames, the Iranian regime may be substituting its gasoline Achilles' heel for an even more serious political one.”

The Foundation for Defense of Democracies has researched the energy companies that supply Iran with gasoline and identified significant points of leverage that can be used to convince them to end their trade. It has also conducted extensive research on the insurance and reinsurance companies that facilitate gasoline sales to Iran.

For more information on FDD's Iran Energy Project, the companies involved in supplying Iran with gasoline, and ways to significantly reduce Iran's gasoline imports, please visit IranEnergyProject.org or contact Judy Mayka at [email protected].

 

 
###
The Foundation for Defense of Democracies is a non-profit, non-partisan policy institute dedicated exclusively to promoting pluralism, defending democratic values, and fighting the ideologies that drive terrorism. Founded shortly after the attacks of 9/11, FDD combines policy research, democracy and counterterrorism education, strategic communications, and investigative journalism in support of its mission. For more information, please visit www.defenddemocracy.org.

 

Issues:

Iran