Iran

Iran MPs propose raising gasoline rate

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Iran’s Parliament has approved a proposal to increase the rate of gasoline in the budget bill for the next calendar year of 1394 (to begin 21 March 2015).

Iran’s media reported on Monday that the proposal has been drafted by the Parliament’s Energy Commission.

The Commission has proposed that the rate of non-rationed gasoline which is sold to the public on the free market price needs to be raised for consumers that exceed an approved consumption basket, said the Persian-language newspaper Ta’adol.

The gasoline consumption basket, Ta’adol added, needs to be worked out by the cabinet.

The daily further said the Energy Commission has proposed similar mechanisms for rates of gas oil, natural gas, electricity and water, as well.

“However, the proposal will still need to be approved first by a Joint Parliamentary Commission which is studying the budget and then by the whole chamber,” Ta’adol wrote without mentioning any more details about the proposed rate hikes.

Iran imports about 40 percent of its required gasoline. In 2007, it started a rationing scheme to reduce the country’s huge gasoline consumption.

Currently, each private car receives a ration of 60 liters per month at about $0.2 per liter. The price for non-rationed gasoline – known as the free market gasoline – is almost $0.3.

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