Iran News ...


12/19/10

Ahmadinejad orders implementation of subsidy reform plan

Source: Mehr News Agency, Tehran

Ahmadinejad also said that the plan can be revised if the country faces major problems during the implementation of the subsidy reform plan.

The implementation of the subsidy reform plan began on Sunday by an order from President Mahmoud Ahmadinejad.  "The prices will not be (fully) liberalized now, but they will be revised since Azar 28 (December 19)," Ahmadinejad said during a live televised interview on Saturday night.

The administration has decided to first revise the prices of gasoline, diesel, and CNG (compressed natural gas).

Based on the data released on Sunday the price of subsidized gasoline which was 1,000 rials (10 cents) a litter will rise to 4,000 rials. If customers need more gasoline they should buy unsubsidized gasoline at a price of 7,000 rials a litter.

Customers are only allowed to consume 60 litters of gasoline at a subsidized price of 4000 rials a month.

Ahmadinejad went on to say, "People's cooperation and frugality are important in the implementation of this law. The successful implementation of this plan will benefit the whole nation."


Headline of a Tehran daily announcing the cuts

Subsidy reform plan is the country's biggest ever economic plan and will pave the way for a booming economy, he stated.

"Country's wealth and energy belongs to people and the best situation will be created when people participate in the management of the national wealth and country's affairs," he added.

Ahmadinejad also said that the plan can be revised if the country faces major problems during the implementation of the subsidy reform plan.

The subsidy reform plan envisages a cutting of subsidies on fuel, electricity, and certain goods over the course of five years. The administration has decided to pay cash subsidies for an undecided period of time to compensate low-income families for the inflationary repercussions of the plan.

The initial stage of the plan started last month as the administration paid cash payments into the bank accounts of people. Then it was announced that the main stage of the plan would go into force at the latest since the beginning of the current Iranian calendar month of Azar which started on November 22, but the administration has started the so-called overhaul of the economy with a delay of about one month.

... Payvand News - 03/25/16 ... --



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