Iran News ...


3/2/07

Iran ratifies two-pricing gasoline supply system

TEHRAN, March 2 (Mehr News Agency) - The Joint Budget Committee of Majlis (Iranian Parliament) on Thursday gave the nod to a dual-price system to distribute gasoline nationwide for the next Iranian year (to start March 21, 2007).

The committee comprising 23 members of the Budget and Planning Committee and 24 other members from 12 parliamentary committees had previously decided to supply gasoline at the price of 150 tomans ($0.16) per liter.

"However, the members reviewed the decision and finally approved a two-pricing system to distribute the product," the committee spokesman Mohammad-Mahdi Mofatteh told reporters.

Under the new system, domestically produced gasoline and the imported commodity (maximally valued at $2.5 billion) would be rationed and distributed at the price of 100 tomans ($0.1) per liter, MP explained.

The official added that the gasoline for surplus consumption would be supplied at a higher price. The government is tasked to consider a maximum subsidy valued at $2.5 billion to fix the open market price, he noted.

In addition, the Oil Ministry and the Management and Planning Organization (MPO) are duty-bound to get the cabinet's approval of the executive bylaw for rationing and determining the open market price by late April, Mofatteh continued.

The deputy further said the ratification would be put into practice late May, "and up to that time, gasoline will be supplied at current 80 tomans (0.08) per liter".

Gasoline consumption and supply have been on Iranian government's agenda over the past few years.

Iran's gasoline consumption is at a high level, as the country imports much of the product to meet domestic needs. The country has adopted certain strategies to manage the increasing consumption.

Upgrading and developing current refineries plus constructing new ones, and the development of urban transportation fleets are some of the strategies.

The replacement of dilapidated cars with news brands are among other measures.

Moreover, the Iranian legislative and executive bodies have attempted to manage gasoline consumption through supplying it by the use of Smart Cards or a two-pricing system.

... Payvand News - 3/2/07 ... --



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