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Commodity prices rise by 70% in Iran without proper control

Oil&Gas Materials 29 December 2018 14:28 (UTC +04:00)

Tehran, Iran, Dec.29

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The average prices of essential goods have increased by 70 percent in Iran, due to lack of supervision and fluctuation of foreign currency rate.

"While over $14 billion dollars was allocated for the purchase of essential goods for the current and next Iranian year (starts on March 21, 2018-2019), the price of these goods at the market were not based on the official USD rate at 42,000 rials," said the Head of Economic Affairs Commission at Iran's Parliament Mohammad Reza Pour-Ebrahimi, Trend reports citing Fars News Agency.

“At a meeting on last Tuesday between the members of the Economic commission of the parliament, the Minister of Industry , Mine and Trade and the authorities of the monitoring bodies, measures were taken to increase the government's control over the commodity prices,” he said.

"The first priority is to reduce the price of essential goods, based on the official foreign currency rate (42,000 rials per USD), otherwise the Economic Commission is going to suggest the allocation of subsides to essential goods," said Pour-Ebrahimi.

“About $23 billion is the difference between the price of basic goods based on the official exchange rate, and the price of these goods in the market. This figure is one quarter of the total budget of the country in next Iranian year [begin on March21, 2019] and should find a solution to reduce that figure,” he added.

Pour-Ebrahimi added that given the price differences, the per capita of each person is determined and this amount is given in the form of a credit to the household.

“By this method, the smuggling of basic goods, which is a waste of the interest of the people, is prevented.”

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