Monday, October 4, 2010

Transport Subsidies to End

As part of a gradual end to subsidies, the Iranian government announced today that the prices for airline tickets would be increased by 30% on Wednesday, followed by a 40% increase in railway tickets by the end of October.

The government is also expected to announce a 400% increase in the price of subsidized gasoline, from 100 to 400 toumans per liter, or $1.44 per gallon. The maximum allowance of subsidized gasoline per vehicle per month is to be set at 60 liters (15.8 gallons) per month. The consumers could still purchase extra gasoline at a price of 670 toumans per liter, or $2.40 a gallon, a 67% increase over the current price of gasoline without coupons.


Anonymous said...

still much cheaper than eu and persian qulf prices.

Nader Uskowi said...

Very true. The subsidies needed to end, much sooner than now. This is a right move. However a 400% increase of a commodity that is a necessity for life will cause inflation across the board.