Azerbaijan, Baku, Dec.20 /Trend, A.Yusifzade /
According to the Iranian governmental information website, the price on liquefied petroleum gas (LPG) in Iran raised up to 9, 6 cents per 1 liter, kerosene up to 9, 6 cents per 1 liter, fuel oil up to 19, 2 cents per 1 liter, subsidized super gasoline up to 50 cents per 1 liter and not subsidized super gasoline up to 77 cents per 1 liter.
According to the new rationing system, the price on gasoline raised four-fold from 10 cents per liter to 40 cents per liter on Sunday. The fuel over a person's quota, which is 50 liters per month, is now sold at 70 cents per liter, compared to 40 cents.
Iran has fixed new electricity, water and gas prices within the governmental plan to reduce the subsidies, IRNA agency reported.
According to Irna agency, electricity tariffs were raised from 1.6 cents up to 4.5 cents per 1 kWh, water tariffs from 8 cents up to 28 cents per 1 cubic meter, gas tariffs from 1, 3 cents up to 7.0 cents per cubic meter from December 19.
Introducing the wide-ranging cuts, Iranian president Mahmoud Ahmadinejad said on Saturday that the reductions in essential subsidies were the "biggest surgery" to the nation's economy in half a century. He said that poor people would enjoy life with higher standards after the cuts and the saved money would result in a flourishing economy for Iran.
"We have taken additional actions, in particular, the petrol price (up to 50 liters per month) will still be subsidized for the first month," President Ahmadinejad said.
However, the authorities try to soften the effect of abolishing the subsidies.
Moreover, direct payments to poor families will be made from Sunday.
Before the official announcement of the plan, every family member received a sum of $80 for two months.
The government plans to gradually cut energy subsidies over five years. It has promised to compensate low income families with direct cash handouts.
Supporters of the plan said that it is in line with global financial organizations' recommendations that Iran will get rid of heavily subsidized economy if it wants to solve its economic problems. But, some analysts have criticized the plan, saying that it could trigger a hike in prices and stoke up inflation in the country.