Iran doubles gasoline prices

Iran doubles gasoline prices

The National Iranian Oil Products Distribution Company (NIOPDC) announced in a statement that, according to a government decree, as of November 15, 2019, the price of a liter of regular gasoline would be increased by 100%. Under the changes, the price for a liter of gasoline rose to 30,000 Iranian rials, from 15,000 Iranian rials per liter, or about USD 0.09.

At the same time, the cost of a liter of gasoline as part of the quota increased by 50%, to 15,000 Iranian rials per liter (about USD 0.13 per liter).

As part of a new rationing system, each private car would be allowed up to 60 liters of gas per month at the subsidized price, while a monthly ration for each motorcyclist was set at 25 liters.

A separate quota of 400 liters of gasoline is provided for taxi drivers. There are quotas for trucks and ambulances, the NIOPDC informs.

Quota for gasoline can be provided under a fuel card, which can be obtained by every Iranian citizen who owns a vehicle.

The government and experts have repeatedly discussed the feasibility of such abruptly gasoline prices increase. Most of them, including Iranian President Hassan Rouhani, are confident that such steps would support the Iranian economy to solve urgent issues.

According to Rouhani stated: “The main aim was for people who have a normal daily consumption of gasoline for the price not to get expensive. For this reason, 60 liters is for one rate and the free rate is different,” recalling that “gas prices have not increased for last four years.”

It should be noted that the gas prices in Iran remain among the cheapest in the world, as government pursues a policy of subsidizing retail gas prices.

Iran is a country with one of the largest oil reserves in the world, but due to problems with oil refining, it was forced to export gasoline to the country until recently. However, as Iranian Oil Minister Bijan Zangane stated at the beginning of 2019, the country no longer has a shortage of gasoline and does not need its import, which stopped in the fall of 2018. Iran itself, according to him, could already export processed fuel.

The previous time, quotas for gasoline were introduced under President Mahmoud Ahmadinejad.