Tehran, Iran, June 24
By Milad Fashtami - Trend:
Iran currently spends some $80 billion each year on fuel subsidies.
Iran's Oil Minister Bijan Namdar Zanganeh said that the figure is a threat to the country's economy, Iran's IRNA News Agency reported on June 24.
He went on to note that with a policy change, Iran can turn this threat into a chance to create job opportunities.
"We are implementing some plans to lower the fuel consumption in the transportation sector," he said.
Earlier his year Iran increased fuel prices as part of the second phase of subsidy reform plan.
The administration of former president Mahmoud Ahmadinejad implemented the first stage of the subsidy reform plan toward the end of 2010 in an attempt to wean the country off food and fuel subsidies.
It is estimated that the government will acquire 480 trillion rials (about $19.3 billion) in the current Iranian calendar year (March 2014-March 2015) in revenues through the implementation of the second phase of the economic reform plan.
On Feb. 16, MPs approved a bill according to which cash payments in the second phase will only be given to low-income families.