Iran’s Ministry of Economy announced today that in the first nine days of the subsidy reforms the fuel consumption across the country has fallen.
"In the past nine days, our petrol (gasoline) consumption which was about 60 million liters (13.1 million gallons) a day is now at 55 million," Deputy Economy Minister Mohammad Reza Farzin told AFP correspondent in Tehran [AFP, 27 December].
"The oil ministry says that diesel consumption, which was at 54 million liters, is now at 40 to 41 million liters," Farzin said, adding that cooking gas consumption had dropped by six percent and water by five percent.
"We are spending 100 billion dollars in subsidies every year from a gross domestic product of 400 billion dollars. We have realized that low energy prices cannot deliver social welfare; it can't reduce poverty. We are determined to use the resources for managing prices more efficiently."