Tehran, Iran, October 15
By Mehdi Sepahvand –- Trend:
The Iranian government has not proposed to increase gasoline price in the current year’s budget bill, Assadollah Qarakhani, member of the Parliament’s Energy Commission told ICANA news agency October 15.
That is why it would not be able to raise the price even if it had the intention, he noted.
The statements come against the backdrop of recent claims by Chairman of Fuel Stations Association Bijan Haj-Mohammad Reza who had said that the government is planning to raise gasoline price from 10,000 rials ($0.3) per liter to 15,000.
However, the Planning and Budget Organization of Iran also recently rejected the claims as untrue.
The government recently agreed to discard fuel cards which are currently used to ration gasoline and gas oil according to monthly allocations.
Economically speaking, this is the best time for the government to lift subsidies on gasoline, since due to low oil prices and the fact that the Persian Gulf free on board (FOB) is about 15,000 rials, lifting the subsidies will mean only a minor raise in gasoline price compared to a couple of years ago when oil prices were double now.
However, on the political front President Hassan Rouhani might be unwilling to cause an economic turmoil half a year before presidential elections, which are likely to see him off to office for a second term.