Tehran, Iran, April 23
By Milad Fashtami - Trend:
Public transportation fares will rise in Iranian capital, Tehran, as of next week.
Member of Tehran City Council Abolfazl Ghena'ati said that a 25-percent increase in taxi fares was decided in the previous calendar year (which ended on March 20).
Ghena'ati also note that the new price system was supposed to become operational as of April 21, but the government asked the City Council to wait until the implementation of the second phase of subsidy reform plan.
"The government needs to provide cheaper diesel oil and electricity to the public transportation sector, he said.
Iranian government is supposed to announce new prices for gasoline and other energy carriers as part of implementing the second phase of subsidy reform plan.
The government was expected to announce the new prices on April 20, but it postponed the announcement. Instead the Iranian government decided to cut semi-subsidized gasoline quota for cars until further notice.
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.
Semi-subsidised gasoline was previously sold at 4,000 rials (33 cents), while the free market gasoline price was 7,000 rials.
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.