Baku, Azerbaijan, Apr.16
By Fatih Karimov - Trend:
If CNG price in Iran increases, the country might be facing a sharp rise in transportation prices.
Representative of union of Iranian CNG station owners, Ardeshir Dadras said that if the CNG price in Iran increases and becomes 60 percent of gasoline price, this will lead to big rise in transportation costs, Iran's Tasnim news agency reported on April 16.
Based on global standards, CNG price should be 30 percent of gasoline price.
"Iran which boast the largest gas reserves in the world, offers gas to its people at the most expensive price in the world," Dadras explained.
Previously Iranian president Hassan Rouhani had said that sharp increase in gasoline price in the current Iranian calendar year, which started on March 21, 2014 is to be expected. He said the gasoline price may increase highly compared to other energy carriers.
Semi-subsidized gasoline is currently sold at 4,000 rials (about 16 cents based on official rate of 24,866 rials per each USD), while the free market gasoline price is 7,000 rials.
Iranians with cars currently receive a monthly allowance of 60 liters at the semi-subsidies price and have to pay 7,000 rials per liter for larger volumes.
Iranian MP Jalil Jafari said on Jan. 21 that increasing the price of gasoline up to 18,000 rials per liter may cause high inflation. He said the best price for gasoline is 7,000 rials per liter for semi-subsidized gasoline, and 10,000 rials per liter for free market gasoline.
The MP said increasing the price of gasoline is inevitable, but the rising process should be implemented gradually in order to prevent imposing sudden economic pressure on the people.
According to Jafari, Iranian government was supposed to increase energy carriers' prices by 38 percent in the current Iranian calendar year (which started on March 20, 2013) but refused to do so in order to prevent further inflation.
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