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The following article was published in our article directory on December 20, 2010.
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Iran Gasoline Prices Quadrupled Overnight

Article Category: Business Management

Author Name: Amanda xzh

Iranian government scheduled to start at the 19 price reform, the phasing out of energy, food and other commodities subsidies.

Gasoline prices

Iranian President Mahmoud Ahmadinejad - Mahmoud Ahmadinejad announced on national television the evening of 18 starting price reform program. "We do not intend to release the price now, however, to implement price adjustment and reform. This plan into effect Sunday." Petrol price subsidies is one of reform. The implementation of the Government of Iran in 2007 gasoline quota subsidy system. Iranians now to buy 60 liters per month by the subsidies of gasoline, 1,000 rials per liter price; over-quota, the price rose to 4,000 rials per liter. Reform program by price, quota prices rose to 4,000 rials per liter, 7,000 rials per liter excess.

Ahmadinejad - Ahmadinejad said that the government decided to take interim measures, the next month, still allows people to 1,000 rials per liter to buy 50 liters of gasoline. "As a result, the reform will have a good start," he said.

Overwhelmed

Statement by Iran's Islamic Republic News Agency, Iran's oil and natural gas reserves, but the past few years, the Iranians to "unreasonable manner" consumption of these important commodities. Iran's official figures show, the government subsidized energy and other commodities, annual expenditure of about 100 billion U.S. dollars.

Iraqi News Agency said the costly subsidies, poor results. The Government has been brewing 5 years to reduce subsidies, reform prices. Price reform plan designed to improve production efficiency and improve the fair degree of subsidy allocation, protection of energy resources.

Apart from petrol, diesel, natural gas, kerosene, electricity, water, bread and other commodities price subsidies will also be phased out within 5 years. Ahmadinejad - Ahmadinejad said the Government's annual expenditure on subsidies for bread, about 40 billion U.S. dollars.

Iran has increased to 1503 billion barrels of proven oil reserves, ranking second worldwide. However, Iran's refining capacity is low, 40% of gasoline demand is imported. The United States and the European Union have implemented sanctions against Iran, oil refining industry. Iran announced in September, the domestic gasoline production exceeds demand, gasoline imports have been stopped.

Inflation worries

Reform policies lead to inflation concerns. According to official statistics, Iran's inflation rate was about 10%. However, some analysts believe the real figure much higher. "Economic experts believe that Iran's inflation rate next year to rise 20% to 70%," Mr crowd Shikanbali Iran, said "the government's compensation policy must meet the basic needs of vulnerable groups."

Reform plan before the announcement, the Iranian government paid two months of cash subsidies to the people, 81 million rials per person. Ahmadinejad - Ahmadinejad urged the public not to rush to the bank to withdraw money. "If they withdraw money shopping, market confusion, victims are people."

Ahmadinejad - Ahmadinejad announced the price reform program, the Tehran gas station before the long lines, people have time for the fuel price rises. Tehran mayor Marton urged the public not get together and cheer, as ample supply of gasoline in Tehran.

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