The National Iranian Oil Refining and Distribution Company (NIORDC) announced today that the consumption of gasoline in the country during the Iranian calendar month ending 21 January was at 56 million liters. The figure compares to 59 million liters for the same period last year, or a 5% reduction in consumption in the first full month after the start of the subsidy reforms.
The subsidized gasoline price of 100 toumans a liter was replaced by a semi-subsidized price of 400 toumans a liter with a cap of 60 liters per vehicle per month. The disappointing meager reduction in consumption reported by NIORDC is probably because people were still using their old 100-touman allocations until they run out of them, something they are entitled to do. Observers expect the consumption level to go down dramatically when the use of the new semi-subsidized gasoline begins to constitute at least 75% of all consumptions, possibly within the next two months.