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Iran cuts semi-subsidized gasoline quota for cars

Iran Materials 21 April 2014 15:04 (UTC +04:00)

Iran, Tehran, Feb. April 21

By Milad Fashtami - Trend:

Iranian government has decided to cut semi-subsidized gasoline quota for cars until further notice.

The government was supposed to announce new prices for semi-subsidized and free market gasoline on April 20, as part of implementing the second phase of subsidy reform plan, Iran's Mehr News Agency reported.

Semi-subsidised gasoline was previously sold at 4,000 rials (33 cents), while the free market gasoline price was 7,000 rials.

Now, the government says that it will not increase the price of free market gasoline, instead it will cut the semi-subsidized gasoline quota.

Iranians with cars used to receive a monthly allowance of 60 liters with the semi-subsidies price until last month and had to pay 7,000 rials per liter for larger volumes.

The government, however, announced that it has not cut the public transportation vehicles' semi-subsidized gasoline quota, so any increase in transportation fares will be unacceptable.

Iranian MP Amir-Abbas Soltani said on January 22 that the gasoline price would be increased by maximum 30 percent.

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