23105
Subsidized Gasoline Inventory Depleting
Energy

Subsidized Gasoline Inventory Depleting

Gasoline inventory in fuel cards, at a subsidized price of 7,000 rials (20 cents), has decreased by 1.1 billion liters since the unification of gasoline prices in May 26, managing director of the National Iranian Oil Refining and Distribution Company.

"Around 400 liters of subsidized gasoline were consumed per month on average, given the limited timeframe for consumption of remaining gasoline," Nasser Sajjadi was quoted as saying by Mehr News Agency.

On May 26, the government stopped selling subsidized gasoline to private vehicles at 7,000 rials and since then regular gasoline is offered at a single price of 10,000 rials (30 cents) for car owners nationwide without a quota, while unleaded gasoline costs 12,000 rials (35 cents) a liter.

The government in 2007 started issuing electronic fuel cards across the country whereby 60 liters of subsidized gasoline were offered monthly to private cars and motorbikes with 1,800 cc engines.

The remainder of subsidized gasoline in the fuel cards, estimated at 2.5 billion liters when the price unification scheme was introduced, should be used by September 22.

"Compressed natural gas prices, currently at 5,000 rials (14 cents), will remain unchanged until the end of summer," the official added.

"The 100 rials (3 cents) decrease in CNG prices has encouraged consumers and consumption of the clean fuel has increased in the past month."

The government decided in late June to reduce CNG prices from 6,000 rials (17 cents) to 5,000 rials (14 cents) per kilogram, as part of a drive to reduce the 60% price discrepancy between gasoline and CNG.

"People's reception of the price reduction might pave the way for continued supply of the fuel at the current price," Sajjadi said.

Despite the rise in gasoline prices and the removal of subsidized gasoline quota, the price of gasoline in Iran—approximately 30 cents per liter of regular gasoline—is almost three times lower than the global average of $1.10 per liter, according to a published report in the Global Petrol Prices.

 

Short URL : http://goo.gl/UtgVbi

You can also read ...

India Co. Says ‘Important’ to  Buy Some Iranian Oil
Mangalore Refinery and Petrochemicals, a subsidiary of India’s...
NIOC Chief: US Talk to Zero Iran Oil Export Is Hot Air
Rhetoric from the United States that it wants to reduce Iran’s...
Crude Prices Rise
Oil prices rose for a fourth day on Wednesday after industry...
NOPEC Threat Prompts Change at OPEC
OPEC has urged its members not to mention oil prices when...
Iran's Marjan Petrochem Company Exports 1st Methanol Cargo
The first 20,000 ton methanol consignment produced by Marjan...
Foreign Firms to Invest in Mazandaran DGs Power Projects
Foreign companies have signed contracts to invest in small...
Russian Expert: Collaboration With Oil Majors Could  Help Iran Enhance Energy Output
Iran has proved that it has great potential for investment...

Trending

Googleplus