Crude oil rich but refined oil poor Iran said the price of gasoline in the country will rise by 700 percent when subsidies are cut.
According to Iran s economy ministry the country hopes to save up to $100 billion a year by phasing out subsidies on gasoline, natural gas, electricity, water and food. But the policy risks upsetting consumers who fear huge price rises.
Riots erupted when the state started rationing subsidized fuel, which can still be bought for 1,000 rials (around $0.10) per litre, and gasoline is one of the most politically sensitive products of all those affected by the subsidy reform.
The gasoline price will be 7,000 rials (around $0.70) after the implementation of the subsidy reform plan, the ministry said.
Under a rationing scheme, introduced in 2007, a motorist can buy 60 litres of subsidised fuel per month for just 1,000 rials per litre (around $0.11), and beyond that amount they have to pay a semi-subsidised price of 4,000 rials.
According to Iran s economy ministry the country hopes to save up to $100 billion a year by phasing out subsidies on gasoline, natural gas, electricity, water and food. But the policy risks upsetting consumers who fear huge price rises.
Riots erupted when the state started rationing subsidized fuel, which can still be bought for 1,000 rials (around $0.10) per litre, and gasoline is one of the most politically sensitive products of all those affected by the subsidy reform.
The gasoline price will be 7,000 rials (around $0.70) after the implementation of the subsidy reform plan, the ministry said.
Under a rationing scheme, introduced in 2007, a motorist can buy 60 litres of subsidised fuel per month for just 1,000 rials per litre (around $0.11), and beyond that amount they have to pay a semi-subsidised price of 4,000 rials.
