Iranians exploded in anger as Tehran suddenly imposed gasoline rationing, because while it may export vast quantities of oil - the nation has little refining capacity.

Queues built up at gas stations Wednesday after the decree, delayed by months due to wrangling in government, came into force at midnight on Tuesday.

Angry drivers fought one another as the lines stretched hundreds of meters into the streets and protesters chanted anti-government slogans, the wire services report.

One gas station burned down and another was damaged as fighting and protests erupted, as the policy change dismayed people who believe abundant, heavily subsidized gasoline is a fundamental right. Unrest was reported in other cities in Iran as well, and some legislators are reportedly working to reverse the reform.

Iran is the world's fourth-biggest oil exporter but because of its lack of refining capacity, it has to import 40% of its gasoline.