Wednesday, October 20, 2010

Gasoline Prices Remain Unchanged, For Now!

Continuing a pattern of conflicting policies announced by Iranian officials concerning the government’s subsidy reforms that are scheduled to go into effect next week, today the official in charge of distribution of subsidized gasoline told reporters that the consumers would still be able to purchase 60 liters (15.8 gallons) of gasoline per month at the current rate of 100 toumans per liter (36 cents per gallon). The announcement came a day after the government started depositing $40 in cash handouts in the bank accounts of more than 80 percent of the citizens to offset the rise in prices of energy-related products, such as gasoline.

The government had earlier hinted that the new subsidized gasoline prices would quadruple to 400 toumans a liter ($1.44/gallon). Observers now believe that a simultaneous cash handout, in the tune of $2.4 billion a month, and maintaining subsidized products at current prices would have a disastrous effect on the economy. But at least today this is where the things stand!

For a more comprehensive article on the subject, in Farsi, please read Donya-e Eghtesad;

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