Fuel Prices Iran
Part of: GIZ International Fuel Price database
Also see: Iran Energy Situation
Fuel Pricing Policies
| Local Currency: | IRR |
| Exchange Rate: | 10355
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| Last Update: |
"Government controls and subsidizes fuel prices. Parliament ratified the Targeted Subsidies Reform Act in Mar 2010, calling for gradually increasing fuel prices to no less than 90% of the Persian Gulf FOB prices between 2010 and 2015, and similarly increasing natural gas, power, and water tariffs. To compensate for higher energy prices, the law authorizes using up to 50% of savings from subsidy reduction for cash and in-kind payments to families, taking their income levels into account, and for a social security system; and 30% of savings to provide soft loans and credit lines to industries. The first price increase was implemented in Dec 2010, and introduced three different price levels for regular gasoline and two for diesel, depending on the consumer category. For regular gasoline, government vehicles and those used mostly in agriculture and industry were in the first price category until Jun 2011, after which this category was eliminated altogether; domestic vehicles with an engine size smaller than 2 liters in the second; and others in the third. For diesel, public transport and industry are in the second category and others in the third. There is a quota for each category, depending on vehicle type, size, and location. In 2011, government did not target cash transfer to low-income households and instead paid 455,000 rials (US$43) a month to every family, the total amount of which exceeded the savings from all the price and tariff increases. The large increase invited much criticism from the parliament, which amended the Act recently to change “no less than 90%” of FOB prices to “no more than 90%.” Parliament also changed the allocation to cash transfer from 50% to 80%. Parliament rejected the proposal to increase prices in 2012. The consumption of every fuel fell in 2011, led by a 36% drop for fuel oil, 11% for LPG, and 10% for diesel. Consumption, however, has increased markedly in 2012."
(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
Fuel Prices and Trends
| Gasoline 95 Octane | Diesel | |
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* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil
Fuel Price Composition
Price composition.
No information available.
At a Glance
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Sources to the Public
| Type of Information | Web-Link / Source |
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| Other Information | http://www.imf.org/external/pubs/ft/survey/so/2010/int092810a.htm |
Contact
Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices
