Baku, Azerbaijan, Jan. 12
By Fatih Karimov - Trend:
Iran will stop selling gasoline at semi-subsidized price of 4,000 rials (about 11 cents) per liter as of Jan. 21.
Naser Sajjadi, managing director of National Iranian Oil Products Distribution Company, said two liters of gasoline at 7,000 rials per liter (about 20 cents) will be charged in fuel cards per one liter of 4,000 - rial gasoline, Iran's Fars news agency reported on Jan. 13.
Iranian government undertakes about $80 billion worth of energy subsidy annually, more than the country's total exports.
However, the figures on Iran next fiscal year's budget, which will begin on March 2015, indicate almost no change in energy prices compared to the current level.
The Iranian government has increased the energy carriers prices twice since 2010 based on implementation of a Subsidy Reform plan, but cheap energy still motivates people to consume more energy.
Semi-subsidized gasoline is currently sold at 4,000 rials (about 11 cents), while the free market gasoline price is 7,000 rials.
Iranians with cars currently receive a monthly allowance of 60 liters at the semi-subsidies price and have to pay 7,000 rials per liter for larger volumes.
This is while statistics show that Iran's average gasoline consumption was around 68.3 million liters per day in the 8th Iranian calendar month (ended November 21).
The country's gasoline output is currently around 60 million liters, so it needs to import the rest.
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