Iran starts gasoline rationing to curb smuggling – MP

Oil&Gas Materials 15 November 2019 17:32 (UTC +04:00)
Iran starts gasoline rationing to curb smuggling – MP

TEHRAN, Iran, Nov.15


Iran's gasoline rationing will help counter smuggling, said a member of parliament energy committee.

Jalal Mirzaie discussed the gasoline rationing that has been introduced in Iran on Nov. 15 in an interview with Trend.

This step aims to curb smuggling and prevent irresponsible fuel consuming; many experts and economists commented that these issues needed to be addressed, Mirzaie said.

In his words, one of the solutions is to increase the prices gradually not to hurt people. "However, even rise of the gasoline price will have meaningful impact on smuggling," he indicated.

"Considering the devaluation of national currency, there is significant difference between the prices in Iran and other countries; therefore, there is high motivation to smuggle unless security organizations decide to take new actions to prevent it. Further implementation of the current effective polices shall also contribute to reduction of smuggling," the MP said.

"The government has taken measures to support low income classes, so it expected that it will provide financial aid to these families," Mirzaie said.

"Actually, people are ready for the prices increase, so it is not a new issue. Hopefully, people will cooperate and understand the situation," the MP said referring to people's reaction to increase of prices.

"The parliament decision was the same and its position was discussed by Parliament Speaker Ali Larijani at the meeting of three powers," Mirzaie said referring to parliament position on the rise of price.

Iran's high economic council of three powers has started the gasoline rationing for all vehicles on Nov. 15, and the price of a regular gasoline was increased from 10,000 rials (about 23 cents) to 15,000 rials (about 35 cents). The monthly ration for each private car was set at 60 liters per month. Additional purchases would cost 30,000 rial (about 71 cents) per liter.

Iran's Plan and Budget Organization has approved new plan to be implemented next month. In line with it, monthly subsides of 455,000 rial (about $10) increases to 550,000 rial (about$13) to low income families. While couples would receive about 1.4 million rial ($32), families of five members will receive slightly more than 2 million rial ($48).