Iran General NewsIran ends fuel subsidies for passenger cars with 1,800cc...

Iran ends fuel subsidies for passenger cars with 1,800cc engines

-

Bloomberg: Iranians driving cars with engines of 1,800cc and bigger will stop benefiting from a rationing plan that supplies subsidized gasoline, Iran’s Oil Ministry news website reported, citing an energy official. Bloomberg

By Ladane Nasseri & Yeganeh Salehi

Iranians driving cars with engines of 1,800cc and bigger will stop benefiting from a rationing plan that supplies subsidized gasoline, Iran’s Oil Ministry news website reported, citing an energy official.

Iran will stop supplying fuel at a cheaper price to “all new locally produced as well as imported passenger cars” with engines of that size, Mohammad Royanian, head of Iran’s transportation and fuel management office, said in today’s Shana report. Iranians with cars pay 4,000 rials (33 cents) a liter for a monthly allowance of 60 liters and 7,000 rials a liter for larger volumes.

Royanian didn’t elaborate on the reason for the change and said it will come into effect from the Iranian month of Bahman, which begins on Jan. 20. Previously cars with engines as powerful as 2,000cc were included in the rationing plan, according to the report.

Officials of the Persian Gulf country have said it has become self-sufficient in gasoline production since domestic use decreased following a phase-out out of energy subsidies that began in December 2010. Iranian officials have said their country, which is grappling with international trade, financial and energy sanctions over its nuclear program, aims to become a “major” gasoline exporter.

Gasoline at a subsidized price will no longer be available in Iran’s border area, Oil Minister Rostam Qasemi was cited as saying in today’s Tehran-based Resalat newspaper. The fuel will instead be sold at the market price to curb smuggling, Qasemi was cited as saying.

Gasoil and gasoline smuggled from Iran was being sold at prices as much as eight times higher in neighboring countries, Deputy Oil Minister Alireza Zeighami said in November.

Latest news

Corruption Allegations Surround Tehran’s Friday Prayer Leader Amid Factional Struggles

Recent reports from Iran suggest that Kazem Sadighi, Tehran's Friday Prayer Imam, has allegedly seized a property valued at...

Housing Accounts for Half of Spending by Tehran Households

Official statistics on income and expenditures of households in Tehran show that urban households in the capital of Iran...

US, UK Ask UN To Prevent Iran from Sending Missiles to Houthis

Representatives of the United States and Britain at the United Nations Security Council meeting called for UN maritime inspection...

Medicine Scarce in Iranian Pharmacies, Abundant in Free Market

The distribution of medicine in Iran faces numerous challenges. Various governments promised to solve these issues at the beginning...

10% of Iran’s Gas Lost in Production and Transmission

The International Energy Agency, states in its annual report that Iran ranks third globally in methane emmissions. According to the...

Iran’s Oil Production Declines, OPEC Reports

The Organization of the Petroleum Exporting Countries (OPEC) has reported a decrease in Iran's oil production for the second...

Must read

Verdict awaited in trial of ‘CIA spy’: Iran official

AFP: A trial in Iran of an American-Iranian man...

Iran bans foreign media cover as student rally nears

Reuters: Iran on Saturday banned foreign media from reporting...

You might also likeRELATED
Recommended to you