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Aviation fuel price in Iran increased by 350 percent

Iran Materials 7 November 2012 14:28 (UTC +04:00)
The price of aviation fuel has been increased by 350 percent in Iran, the Mehr News Agency reported.
Aviation fuel price in Iran increased by 350 percent

Azerbaijan, Baku , Nov. 7/ Trend F.Milad/

The price of aviation fuel has been increased by 350 percent in Iran, the Mehr News Agency reported.

The aviation fuel will be sold at the price of 7000 rials (Iran's official exchange rate is 12,260 rials to the dollar) as of November 7.

The aviation fuel cost 2000 rials, previously.

Iranian airlines increased ticket prices for domestic flights by 65 percent averagely as of November 6, the head of the Association of Iranian Airlines, Abdolreza Mousavi, said.

For example Tehran-Kish airplane ticket will be sold at the price of 1.7 million rials (some $138 based on the official rate of US dollar) while it was previously being sold at one million rials (some $81.5), the ISNA News Agency reported.

It is while the director of the Civil Aviation Organization Hamid Pahlavani had announced on October 10 that Iranian airlines will be increasing ticket prices for domestic flights by maximum 50 percent.

Pahlavani added that different factors, including foreign currency prices, are considered to set the ticket prices, the ISNA News Agency reported.

Mousavi had also said in September said that until late June of last year, aviation fuel cost 1000 rials.

The managing director of the Airtour passenger airline said in October that the airline has suffered 200 billion rials (some $16 million) loss as the administration will no longer provide the airline with dollar at reference rate of 12,260 rials. Therefore, the airline cancelled all its international and tourism flights, ILNA reported.

As the administration does not provide the airline with official-rate dollar, the airline has to pay costs based on the free market dollar, Sirous Baheri noted.

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