Iran has announced a 66.6% increase in the above-quota price of gasoline while retaining heavily subsidized fuel quotas for millions of motorists.
Tehran - ISNA - A cabinet notice issued Tuesday, outlining decisions from its November 5 session, said the free-market gasoline price will rise by 20,000 rials to 50,000 rials per liter (USD 0.044) starting December 6.
That comes as most motorists will continue to access fuel under a two-tier system, paying 15,000 rials per liter for the first 60 liters each month and 30,000 rials per liter for the next 100 liters, the notice said.
Any consumption above these quotas will be charged at the new 50,000-rial rate, it added.
The government also said vehicles owned by state institutions, imported cars, and newly registered vehicles will no longer qualify for subsidized gasoline.
The price adjustment comes amid Iran’s efforts to curb fuel smuggling, a problem that has forced the government to spend billions of dollars on gasoline imports each year to prevent domestic shortages.
Estimates indicate more than 30 million liters of gasoline and diesel are smuggled out of the country daily.
Local media reports last week revealed that a convicted fuel smuggler had been ordered to pay a fine of 110 trillion rials (about $100 million) to compensate for losses inflicted on the government.
According to the cabinet directive, the above-quota price may be revised every three months in line with refinery pricing, which forms the basis for the new rate. The 50,000-rial price represents 10% of what the government pays refineries to purchase gasoline.
