Azerbaijan, Baku, Feb. 16 / Trend, A.Yusifzade /
With the reform plans that Iranian government began implementing from Dec.19, 2010 Iran's petroleum consumption reduced from 65 to 51 million liters per day, Iranian President Mahmoud Ahmadinejad said on his televised speech, Shana reported.
According to Ahmadinejad, subsidy plan enabled to reduce fuel smuggling by $3 billion.
Before the cuts, subsidies enabled to supply Iranians with cheap gasoline, which cost about 10 cents per liter (38 cents per gallon). Under the reduced subsidies and the rationing, each consumer can buy up to 60 liters (15 gallons) gasoline a month at 40 cents a liter ($1.50 per gallon), while for extra volumes the price is about 70 cents per liter.
Earlier Hussein Zulfugari, Iranian Border Guard Commander General told Trend that the rise in energy prices has reduced fuel smuggling by 23 percent in Iran over the past 45 days.
The Iranian parliament approved a law to increase the prices of energy resources in October 2009. Under the law, Iran must gradually increase the price of oil and oil products to no less than 90 percent of the energy prices set at the FOB Persian Gulf. The average price for natural gas on the domestic market should reach at least 75 percent (including VAT) of the price of exported gas.
Zulfugari said a noticeable reduction has been observed in fuel smuggling recently in Iran.
At the same time, fuel smuggling has increased in some regions and declined in others, he added.
"For example, there is a high rate of fuel smuggling in the Persian Gulf. I think it is due to the difference in fuel prices in Iran and some Gulf countries," Zulfugari said.
According to Iranian media, gasoline and diesel fuel from Iran to neighboring countries are supplied through smuggling. Iran produces 63 million liters of gasoline per day, as a result of which certain limits were set on the sale of oil products. In connection with the abolition of subsidies on gasoline, Iran sells gasoline for 50-60 cents per liter. In addition, in connection with adapting the prices for electricity, water and gas to world prices, the government also abolished subsidies in these spheres.