Baku, Azerbaijan, Sept. 2
By Elnur Baghishov - Trend:
The subsidies given for energy in Iran are equal to the subsidies given to half of the world's population, the Executive Director of the Electric Power Distribution Company of East Azerbaijan Province Akbar Farajnia told IRNA, Trend reports.
According to him, about $45 billion of energy subsidies are being allocated to Iran's population of (approximately) 85 million annually. Meanwhile, China's energy subsidies amount to $38 billion, while India's subsidies amount to $15 billion.
"About 10 percent of Iran's domestic raw material production is spent on energy subsidies," he said.
The company's official said that in 1978, the cost of each kilowatt-hour of electricity in Iran was 2 rials. At present, the cost of electricity per kWh is 650 rials (app. $0.015).
"However, based on economic grounds, the cost of electricity per kWh should be 2,480 rials (app. $0.05)," he said.
Farajnia added that oil, gas, and gasoline prices in Iran rose by an average of 23 percent per year, while the annual electricity price keeps rising by 17 percent.