Phasing Out Energy Subsidies Starts Today

12:41 (Sunday, December 19, 2010)
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TEHRAN December 19 (Shana): Reforming energy subsidies started today following a last night live radio and television program in which Iranian president, Dr. Mahmoud Ahmadinejad announced reforming energy prices would start from tomorrow.

In this program the president said that equivalent of 6.5 million barrels of gas and oil are being produced a day in the country of which 2.3 million barrels are exported.

The president noted that domestic oil and gas consumption is equivalent of 4.2 million barrels of oil per day that is fourfold the average of world energy consumption. He went on to ask: ‘does our welfare standards are fourfold higher in comparison with the world average?”

Elsewhere in his remarks, the president said that energy consumption in our country is suffering some problems including energy waste, lack of efficiency and uneven distribution of energy subsidies.

The president urged the people to reduce current energy consumption by a quarter through energy saving and more efficient use of energy.

Following the last night president remarks on the new phase of removing energy subsidies, Targeting Subsidies Headquarters issued a statement on new prices of oil products that comes into force at 12 pm tonight.

According to the statement the price of rationed regular gasoline, 60 liters per month, increases to 4.000 IR rials per liter (40 cents) and free gasoline, out of rationing system, to 7.000  IR rials (70 cents) per liter.

This is while the people can consume the remaining amount of gasoline loaded on their smart cards in recent months based on former price of 1.000 rials for each liter.

Also Transportation and Fuel Management Office announced yesterday 50 liters of ‘protective rations’ had been charged on the smart cards of private car owners for the Iranian month of Day (22 December 2010- 20 March 2011) with a price 1.000 rials per liter.

Rationed gas oil price increases to 1.500 rials per liter while consumers should pay 3.000 rials (30 cents) for each liter of additional use. Meanwhile CNG would be offered based on 3.000 IR rials for each cubic meter.
 

 

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