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NIOPDC official discusses real gasoline price

Oil&Gas Materials 22 October 2012 16:34 (UTC +04:00)

Azerbaijan, Baku, Oct.22 /Trend F.Milad/

Judging from the official reference rate of 12,260 rials to the US dollar, the real price of gasoline in Iran is 10,000 rials (about 82 U.S. cents), deputy manager of National Iranian Oil Products Distribution Company (NIOPDC) Naser Sajjadi said on Monday.

Iranian gasoline consumption increases by 5 percent each yeart, the the Mer News Agency quoted Naser Sajjadi as saying.

Today, gasoline is sold at two prices: a 60-liter monthly allowance at 4000 rials (33 cents) per liter, and any amount above that at 7000 rials (57 cents) per liter.

"As Iran is entering the second stage of the subsidy reform plan, the most appropriate price for a liter of petrol is 10,000 rials (about 82 U.S. cents)," MP Gholam-Reza Mesbahi Moghaddam said in May.

Mesbahi Moghaddam, who is the chairman of the Majlis Economic Reform Committee, told the Mehr News Agency that since the subsidy reform plan must be implemented over a five-year period, 10,000 rials per liter is the best price for gasoline, which is now sold at 7000 rials per liter.

He also proposed that the monthly allowance price of 4000 rials per liter be increased to 7000 rials per liter.

Last year, the International Monetary Fund commended the Iranian government for the subsidy reform policy, which it said had led to a reduction in fuel consumption.

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