The National Iranian Gas Company (NIGC) has informed cryptocurrency miners about a rise in natural gas prices for the current fiscal year (started in March 2022).
As per the decision, each cubic meter of gas will cost 53,268 rials for cryptominers -- 23,928 rials higher than last year's price of 29,440 rials, Peyvast Magazine reported.
The NIGC added that the new rates are retroactive and cryptomining bills for the past six months will be based on these rates.
In response to the decision, Iran Blockchain Association said applying new rates on previous bills is illegal and called for a revision.
"Miners should have been informed at the beginning of the year to be able to decide whether or not they can afford the higher prices," IBA said.
"The new rates will obviously hurt the sector," a press release on the association's website said.
"Mining the digital currency are already saddled with problems due to the internet restrictions [introduced to control the ongoing unrest in the country]. Uncalled for and unproductive policies are threating the cryptomining sector. Such measures will result in the expansion of illegal cryptomining."
Natural gas is the feedstock for 35% of legal cryptocurrency mining centers in Iran.
In 2019 the former government recognized cryptomining as a legal industry. Miners had to apply for a permit from the Ministry of Industries. However, trade in crypto is still banned.
Miners were required to acquire a license from the Ministry of Industries and pay their electricity bills based on export rates.
The tariff will be cut by half when household consumption is low and the grid is not under pressure as usually is the case in the summer months.
Rates double during restrictions like when power plants do not receive enough gas as feedstock or the national grid faces problems supplying households.
However, illegal farms have cropped up with increasing speed using subsidized electricity because they must pay much higher tariffs if they operate with a permit.
More than 7,200 unauthorized cryptomining centers have been identified and shut since 2020.
