Iran plans to cut fuel subsidies from Sept 23 -agency

Iran plans to cut rationed subsidised gasoline after the implementation of the country's subsidy reform plan, the official IRNA news agency quoted a senior official as saying on Sunday.

Iran plans to cut fuel subsidies from Sept 23 -agency

Iran plans to cut rationed subsidised gasoline after the implementation of the country's subsidy reform plan, the official IRNA news agency quoted a senior official as saying on Sunday.

Iran said last month it would start cutting government subsidies on many staples, including food and fuel from the second half of the Iranian year, which started on March 21.

"After the implementation of the subsidy plan, gasoline will be sold on free market price," said Mohammad Rouyanian, head of Iran's Transportation and Fuel Management Office.

Under the rationing scheme, introduced in 2007, a motorist can buy 60 litres of subsidised fuel per month for just 1,000 rials per litre (around $0.11), and beyond that amount they have to pay a "semi-subsidised" price of 4,000 rials.

President Mahmoud Ahmadinejad hopes to save the state billions and stimulate the economy by carrying out the subsidy plan.

Rouyanian did not say how much free market price for gasoline would be but some newspapers have suggested a price of 5,000 rials per liter.

Oil ministry officials were not available to comment.


Reuters

Last Mod: 06 Haziran 2010, 15:26
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