New law needed for petrol price hikes in Iran - MP
Azerbaijan, Baku, April 2 /Trend, M. Moezzi/
Charging higher prices for petrol in Iran requires the passage of a new law because existing legislation doesn't permit any price increase, spokesman for the Majlis (parliament) energy commission Seyed Emad Hosseini said, IRNA reported.
In recent days, there have been reports that the government of President Mahmoud Ahmadinejad wants to increase petrol prices between 20 to 40 percent.
In response to the government's plans, Seyed Emad Hosseini, the spokesman for the Majlis energy commission said the executive branch has to start all over again in getting permission to increase prices because during the first year of Iran's targeted subsidies program it added enough to petrol prices to count as two years of hikes.
Iran's targeted subsidies program pays citizens about $37 a month while eliminating subsidies from energy and some commodities.
The second phase of the program, which is to include higher prices for petrol, gas and water, is to start this year after it is approved by Iran's Majlis.