TEHRAN, Iran. Dec.27
Trend:
An increase in gasoline prices in Iran as part of a targeted subside plan would lead to a high inflation rate, an energy expert told Trend.
The rising gasoline price increases changes of Iranian national currency's devaluation in short term, said Morteza Behrouzifar.
Implementation of targeted subsidy plan has increased the gasoline prices, so the further increase would eventually lead to increase of prices on basic goods, he said.
In 2010, the gasoline subsidy allowed Iranians to fuel their cars for just 1,000 rials (about $0.023) per liter for the first 60 liters they buy per month.
In 2014, Iran started the second phase of its targeted subsidy plan under then President Hassan Rouhani. The gasoline prices jumped by 75 percent from 4,000 to 7,000 rials ($0.09 to $0.16) per liter.
In 2019, Iran imposed petrol rationing and raised prices again, by at least 50 percent, from 10,000 rials (23 US cents) per litre for the first 60 litres of petrol bought each month, to 15,000 rials (35 US cents) per liter.