Iran oil minister does not reject stopping fuel rationing

Business Materials 24 May 2015 11:35 (UTC +04:00)

Baku, Azerbaijan, May 24

By Fatih Karimov - Trend:

Iran Oil Minister Bijan Namdar Zanganeh has not rejected stopping fuel rationing, saying that the final decision will be taken in 2-3 days.

Rumors about a hike in fuel prices is growing in Iran as semi-subsidized gasoline quotas were not charged into fuel cards this month for the first time over the past eight years.

"All options are on the table," Iran's IRNA news agency quoted Zanganeh as saying on May 23. "Just wait 2-3 nights and you will find out the new gasoline prices for passenger cars."

The oil minister and the managing director of the National Iranian Oil Products Distribution Company had previously rejected any change in price and volume of gasoline quotas in the current Iranian fiscal year, which began on March 21.

In this line, an informed source told Fars news agency on May 23 that the decision to stop charging fuel cards was an approval of the administration.

Iran is facing with financial resources deficit to pay cash subsidies within the framework of the subsidy reform plan.

Experts say the administration should deal with the situation through either removing wealthy people of the list of subsidy receivers or increase fuel prices.

The Iranian government has increased the energy carriers' prices twice since 2010 based on implementation of the subsidy reform plan, but cheap energy still motivates people to consume more energy.

Iranians with cars currently receive a monthly allowance of 60 liters at the semi-subsidies price of 7,000 rials per liter and have to pay 10,000 rials per liter for larger volumes.