Iran's MP: increasing fuel price to make up for budget deficit - a mistake

Oil&Gas Materials 27 April 2019 09:25 (UTC +04:00)

Tehran, Iran, April 27


Increasing fuel prices in Iran is justifiable only if it leads to job creation, support for low-income groups and infrastructure, otherwise it can't be logical, an Iranian MP believes.

“Since the rise in gasoline prices definitely affects the costs of goods and services, the government must first assess the consequences of this measure economically, socially and politically,” a member of energy commission of Iranian Parliament, Jalal Mirzaie said, Trend reports citing ILNA.

"Obviously, the idea of increasing fuel prices is to optimize consumption, but what's important is the purchasing power of people and the type of support that needs to be made for low-income groups,” he said.

“In order to change the price of gasoline, deterrent factors should be taken into account, while in the present situation, the political and international environment will affect any decision we make,” said the MP.

Mirzaie went on to say that the government and the parliament need to determine the sectors, where it will spend the surplus revenue from the increased fuel prices.

“Spending those revenues for new jobs, low-income groups and infrastructure is justifiable," he said. "But not if we want to compensate the current budget deficit."