Iran to raise fuel prices under limited conditions

Iran will raise the price of its heavily subsidized fuel under certain limited circumstances, the semi-official Tasnim news agency reported on Tuesday, as the OPEC member seeks to control increasing fuel demand without triggering public anger.

"With the government's decision, starting in December, refueling vehicles with emergency fuel cards will be charged at a rate of 50,000 Iranian rials per liter ($0.44 per the free market rate)," Tasnim reported, adding that the new rate represented 10% of what it costs the state to buy one liter of fuel from refineries.

Emergency cards can be used at fuel stations if the driver is not in possession of their smart card, introduced in 2007, which allows them to purchase up to 60 liters of fuel at 15,000 rials per liter ($0.14) and up to 100 liters at 30,000 rials per liter ($0.27).

According to Tasnim, domestic fuel production of around 110 million liters per day is surpassed by rising demand which can go up to 140 million liters per day due to several factors such as inefficient cars, smuggling and summer heat.


Reuters