Iranian government lifts subsidized monthly gasoline ration

Business Materials 25 May 2015 11:57 (UTC +04:00)

Tehran, Iran, May 25

By Mehdi Sepahvand - Trend:

The Iranian government lifted a semi-subsidized monthly gasoline ration of 60 liters for cars that used to be sold at 7,000 rials or about $0.25, as each 28,500 rials makes one USD) per liter.

Previously, gasoline was sold at two prices, the ration price and a (comparatively) free price of 10,000 rials per liter. Now only the free-price gasoline is available in the country. If not subsidized, the price would be much higher.

Announcing the news, National Iranian Oil Refining and Distribution Company (NIORDC) spokesman Davod Arabali added that high-octane gasoline (called super) will also be sold at 12,000 rials per liter, IRNA news agency reported May 24.

Also, gas oil price was set at 3,000 rials per liter.

Kerosene was set at 1,500 rials per liter and liquefied gas at 2,300 rials per kilogram.

He also said that passenger airplane fuel would be sold at 6,000 rials per liter.

Daily gasoline consumption in Iran hit 72.5 million liters in the week ended on May 1. The country's gasoline output is currently around 62 million liters, so it needs to import the rest. The Islamic Republic currently imports Euro-4 gasoline only.

Iran is facing a financial resources deficit to pay cash subsidies within the framework of the subsidy reform plan. Experts have said 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.

Edited by CN

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