Iran s economy is in a deteriorate state due to under-pricing of domestic energy as a large subsidy that burdens the economy and contributes to deep inefficiencies in the energy sector, said IEA.
According to International Energy Agency s World Energy Outlook, Iran's fossil-fuel subsidy was higher than any other country in 2009 at $66 billion.
However, the county have taken measures to address the problems created by the subsidies, but noted many challenges remain before changes are implemented.
In its fifth Five-Year Development plan, covering 2010-2015, Iran hopes to overhaul its energy subsidy policy with the gradual implementation of market-based energy pricing and the replacement of subsidies with targeted assistance to lower-income groups.
Iran's aim is to raise the price of gasoline, diesel, kerosene, liquefied petroleum gas and other oil derivatives to at least 90% of the Persian Gulf export free-on board price, elevate gas tariffs for households to 75% of the Persian Gulf export price--with preferential rates being applied to industrial consumers--and determine average electricity prices based on the full cost of production.
According to International Energy Agency s World Energy Outlook, Iran's fossil-fuel subsidy was higher than any other country in 2009 at $66 billion.
However, the county have taken measures to address the problems created by the subsidies, but noted many challenges remain before changes are implemented.
In its fifth Five-Year Development plan, covering 2010-2015, Iran hopes to overhaul its energy subsidy policy with the gradual implementation of market-based energy pricing and the replacement of subsidies with targeted assistance to lower-income groups.
Iran's aim is to raise the price of gasoline, diesel, kerosene, liquefied petroleum gas and other oil derivatives to at least 90% of the Persian Gulf export free-on board price, elevate gas tariffs for households to 75% of the Persian Gulf export price--with preferential rates being applied to industrial consumers--and determine average electricity prices based on the full cost of production.
