Azerbaijan, Baku, May 6 / Trend F.Milad /
The Iranian parliament (Majlis) approved on Sunday a bill to set ceiling prices on fuels according to the subsidy reform plan.
The MPs approved that the domestic sale prices of gasoline, gas oil, furnace oil, kerosene and liquefied gas should not exceed the Freight on Board (FOB) prices in the Persian Gulf, the ISNA News Agency reported.
The administration of President Mahmoud Ahmadinejad presented the draft of the national budget bill for Iranian calendar year 1391 (started March 20) to the Majlis on February 1, in which it was proposed that the revenues from subsidy elimination savings would be increased from about $44 billion to $110 billion.
Economic experts say the Majlis may agree to raise energy prices to some extent, but far less than the administration has requested.
Reportedly, last week the administration decided to suddenly free up energy prices to complete the implementation of the subsidy reform plan this year.
The Majlis says the administration's decision is illegal because it runs counter to the subsidy reform plan, which calls for the subsidies on fuel, electricity, and certain goods to be cut over the course of five years.
The implementation of the subsidy reform plan began in December 2010.
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