Iran Economy NewsIran keeps gas price hike despite consumer 'dismay'

Iran keeps gas price hike despite consumer ‘dismay’

-

AFP: Iran will not review cooking gas prices despite dismay among consumers who have seen their bills multiplied as much as seven fold after the government scrapped subsidies, a newspaper reported Thursday.

TEHRAN (AFP) — Iran will not review cooking gas prices despite dismay among consumers who have seen their bills multiplied as much as seven fold after the government scrapped subsidies, a newspaper reported Thursday.

“The tiered system of calculating the gas price of households will not be changed,” Deputy Oil Minister Javad Oji, who is in charge the state gas company, was quoted as saying by Donya-e Eqtesad daily.

Based on a tiered calculation system, the price can increase even further if consumers do not meet the “standard of consumption,” a measure introduced by the government seeking to decrease energy consumption.

Under the controversial plan to end state subsidies implemented by President Mahmoud Ahmadinejad in December 2010, the price of gas per cubic metre was multiplied by more than five times to 700 rials (six US cents).

The government is now directly paying, in cash, 40 dollars (28 euros) a month to each Iranian to compensate for the hike in various energy products and bread.

Oji acknowledged that some 30 percent of consumers, particularly in Tehran, have refused to pay their winter bills, the paper reported.

Lawmakers have unsuccessfully asked the government to review the gas hikes.

The national gas company argues that there is no basis for a change in prices since more than 80 percent of consumers are paying less than 35 dollars a month.

The government has suggested that the “heavy users” could spread payment of their bill. It also advised consumers living in residential complexes to install one gas metre for each flat.

Most of the buildings share one gas metre for all households, triggering a massive bill calculated by the tiered system in a country which holds 16 percent of global gas reserves and is the world’s fourth-largest producer.

The government is hoping to save billions of dollars with implementation of an economic overhaul and subsidy cuts, and a major objective is to decrease energy consumption.

According to official figures reported by the media, 74 million Iranians use as much gas as the entire household population of the European Union.

Latest news

Iranian Regime’s Head of Prisons Organization Confesses to the Catastrophic Situation of Iran’s Prisons

It is no secret that the Iranian regime’s prisons are some of the worst in the world, with catastrophic...

Iranian Regime and the Humiliating Failure of the Nuclear Talks

The nuclear talks and their ups and downs have become an endless series of stalemates in recent years. As...

Open Letter to Rt. Hon. Boris Johnson, MP To Support the Iranian Resistance

Since 2004, after the failed coup against the Iranian Resistance in 2003, carried out by the then French government...

Iranian Regime Ignores Its Main Demand in the Qatar Talks

On the evening of Friday, June 24, the High Representative of the European Union Josep Borrell traveled to Iran...

Regime’s Negligence Makes Iran the Main Loser in Oil Competitions

Last Friday, the Iranian regime’s president Ebrahim Raisi claimed in a meeting that his regime could be a 'stable'...

Dez River Joins the Dried-Up Rivers of Iran

The Iran regime’s insistence on pointless dam construction and the diversion of the rivers has dried up another river...

Must read

Iran to face new E.U. sanctions, Brown says

Washington Post: British Prime Minister Gordon Brown announced plans...

Iran’s Khamenei vows to circumvent nuclear sanctions

AFP: Iran will circumvent international sanctions aimed at halting...

You might also likeRELATED
Recommended to you