"For consumers, the price paid for the first 60 liters (around 63 quarts) per month will remain unchanged at 15,000 rials (1.3 US cents) per liter, and the next 100 liters at 30,000 rials per liter. Each additional liter will cost the consumer 50,000 rials in the future. The move comes amid pressure to reduce fuel subsidies. The Iranian economy has been in deep turmoil for years, exacerbated by chronic mismanagement, corruption and stringent international sanctions due to its contested nuclear program."
""The production costs for fuel in Iran are 20 times higher than the price set by the state. Subsidies lead to excessive domestic consumption and massive smuggling," he told DW. Gasoline smuggling to neighboring Afghanistan and Pakistan remains a thriving business due to the massive differences in the prices across these countries. In those nations, a liter of gasoline costs about 80 to 90 cents, much higher than the price in Iran."
Iran will raise petrol prices for motorists who consume more than 160 liters per month, keeping the first 60 liters at 15,000 rials and the next 100 liters at 30,000 rials while charging 50,000 rials for each additional liter. The price change responds to pressure to reduce heavy fuel subsidies that keep consumer gasoline among the cheapest globally despite high production costs. Subsidies contribute to excessive domestic consumption and large-scale smuggling to neighboring countries where prices are far higher. The measure aims to ease subsidy burdens amid a troubled economy facing mismanagement, corruption and international sanctions.
Read at www.dw.com
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