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Iran to increase public transport fare

Oil&Gas Materials 21 December 2010 14:34 (UTC +04:00)

Azerbaijan, Baku, Dec.21 /Trend, A.Yusifzade /

A new fare for public transport was approved at a meeting of the Iranian Transportation and Fuel Management Office. An average amount for public transport fare in Iran will be increased by 10 percent.

Seyyed Shams al-Din Hosseini, Iranian Minister of Economy and Finance, confirmed a new transport tariff.

The total amount of fully subsidized fuel sold in Iran will be cut from 45 million liters to 39 million liters per day, Mohammad Rovanian, head of the Iranian Transportation and Fuel Management Office, was quoted by Mehr news agency, as saying earlier on Saturday.

The Iranian government plans to gradually cut energy subsidies over the five years. It has promised to compensate low income families with direct cash handouts.

Earlier, Dariush Qanbari, a member of the parliament, said that direct cash payments would not make up for price hikes.

"Based on the economic experts' opinion, the country's inflation rate will increase by 20 up to 70 percent in the coming year. The governmental compensation policy must be conducted for the weaker segments of the society to be able to meet their basic needs,'' Qanbari told the semi-official ILNA news agency this month.

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