...

Iranian oil minister urges people to economize on gas consumption

Oil&Gas Materials 25 June 2014 12:56 (UTC +04:00)

Baku, Azerbaijan, June 25

By Fatih Karimov - Trend: Iranian oil minister Bijan Namdar Zanganeh has urged people to economize on gas consumption.

He suggested that people should improve efficiency of power in their homes and use gas ovens with higher energy efficiency grades, Iran's Mehr news agency reported on June 25.

People can save 5,000 rials per square meter in their homes through improving power efficiency, he noted.

USD exchange rate in Iran is currently about 32,000 rials.

On June 10, Mohammad Reza Gharavi, deputy director of National Iranian Gas Company, said around 21 million houses in 95 percent of the cities and 56 percent of the villages are currently being supplied with natural gas.

He added that Iran will earn $4 billion through increasing gas bills in the current year.

Gharavi added that gas bills for the household sector have been increased within the framework of the second phase of the subsidy reform plan.

The Iranian calendar year begins on March 20.

The Iranian administration increased gas bills by a minimum 20 per cent in the current Iranian calendar year.

Gas bills for the household and the public sectors rose by 20 per cent and 30 per cent, respectively.

Moreover, gas bills for petrochemical and steel units have increased, as well.

On March 2, the managing director of Iranian Fuel Conservation Company, Nasrollah Seifi said that households' consumption accounts for the lion's share of the country's total gas consumption.

He went on to note that Iranians currently pays only 16 per cent of the real price of natural gas and the government pays for the rest in the form of subsidy.

The subsidy reform plan is aimed at easing pressure on state finances by cutting tens of billions of dollars from government subsidies on food and fuel. The government pays cash to citizens as compensation for increased prices by cutting subsides.

Iranian government currently spends $1.4 billion per month ($16 billion annually) on cash subsidies, which is $4.74 billion more than its income from the subsidy reform plan.

Tags:
Latest

Latest