Wednesday, December 1, 2010

Gasoline Price Set to Increase by 700% - UPDATE

Iran’s minister of economy said today in Tehran that as part of the government subsidy reforms and their removals, the price of gasoline will be set at 700 toumans a liter ($2.52 a gallon). This would be a 700% increase in the price. The removal of energy sector subsidies, including the gasoline, was expected to go into effect last week, but has been postponed without any explanations or any dates for their implementations. The comments by the minister of economy was an indications that the subsidy removals will indeed take place.

Source: Kayhan, 1 December 2010

UPDATE- ISNA reported on Thursday that the minister of economy has denied Kayhan's story. We understand that Kayhan will reject the denial and would insist that the minister made the remarks on tape.

Uskowi: The story, the denial, and the expected rejection of the denial are an example of the early mismanagement of subsidy reforms. The government has not published any details on the program or any date certain for the start of its first phase, and different ministers in the past four months have offered their own understanding of the program, often contradicting each other. The fear is the mismanagement on the part of the government would hurt the chances of success of a program vital to the country's economic development.


Hesam said...

is this only for the ''azad'' gasonline ? Or all Gasoline?

Anonymous said...

that would cclean up the air

Nader Uskowi said...

Anon 9:01 AM,

The minister did not specify. I believe this is for all gasoline. By the way, shouldn't the price of "azad" gasoline be azad and not fixed by the government?

Anon 10:30 AM,

I wish this was as clean as you think! I am seriously concerned about runaway inflation, especially now that Ahmadinejad has said that he would double the monthly cash handouts to two-thirds of the population. The combination of doubling the cash handouts (that's $15 billion a year) and 700% increase in gasoline prices could be so inflationary that can kill an otherwise good program.

Anonymous said...

The move to remove subsidies is good both economically and environmentally as it would reduce consumption and encourage alternate fuels use as well as public transport.

Anonymous said...

The US dogs and zionist pigs have caused this problem for us.

The new pipeline in UAE will hurt us more.

How come we do not refine our own massive amounts of oil? Are we saving the oil for the Chinese to help us?

Anonymous said...


Anonymous said...

this would spark major riots .