Baku, Azerbaijan, Apr.9
By Fatih Karimov - Trend:
The Iranian administration has increased prices for liquefied petroleum gas for household and industrial uses, kerosene, and furnace oil.
Iran's Tasnim news agency reported on April 9 that prices for liquefied petroleum gas for household and industrial uses increased from 18000 rials (about 70 U.S. cents) and 54000 rials (about $2.1) per kilogram to 21000 rials and 65000 rials, respectively.
Prices of kerosene and furnace oil increased from 1000 rials and 2000 rials to 1500 rials and 2500 rials, respectively.
Iranian economy minister Ali Tayyebnia said on April 8 that Iran will liberalize fuel prices in a time span of 5-7 years.
The Iranian administration has targeted 70 trillion rials (about $2.8 billion) from implementing the subsidy reform plan in the current Iranian calendar year, which began on March 21, Iran's Tasnim news agency reported.
Tayyebnia went on to say that the administration has placed the top priority on improving health services to the public.
The national budget law allows the administration to gain 200 trillion rials (about $8 billion) through raising fuel prices, but the administration aims to gain one third of the sum, he explained.
"Based on the subsidy reform plan, 50 percent of revenues should have been paid both in cash and in kind to people, but in reality, much more was paid."
Iranian President Hassan Rouhani said on April 5 that he will accept full responsibility for implantation of the second phase of subsidy reform plan, Iran's Mehr News Agency reported.
"The country's inflation rate is projected to drop to 25 percent by the end of the current Iranian calendar year (March 20, 20105)," he said.
"Improving relation with foreign countries may even cause the figure to fall below 25 percent," he explained.
He put the Iranian government's total income at around 1,480 trillion rials (some $48.36 billion based on the exchange rate of USD at the free market).
"My government faced severe economic problems in the past year but I never allowed borrowing money from the central bank," he said.
The Statistical Center of Iran on March 1 put the 12-month and the point-to-point inflation rates for the eleventh Iranian calendar month of Bahman (January 21 - February 19) at 33.7 percent and 22 percent, respectively, Iran's Mehr News Agency reported.
In November 2013, Iranian President Hassan Rouhani said for the first time that his government plans to decrease the inflation rate to below 25 percent by the end of the next Iranian calendar year 1393 (March 20, 2015).
The inflation rate was projected to hit 35 percent at the end of the previous Iranian calendar year (March 20).