Price of petrol on its way up in Iran

Head of Iran transportation and fuel management headquarters announced that petrol subsidies will stop in the second half of the Iranian year and the price of petrol will increase.

Sardar Robanian stated that they have decided to offer petrol and diesel fuel in a “half subsidized” form in the second half of the year.

ISNA reports that Robanian claimed the officials have five years to offer fuel at its market price.

It has been predicted that in the second half of the year the price of petrol will reach 400 toumans (40 cents) per litre.

The increase in the price of petrol in Iran is one of the results of cutting government subsidies; a project which Mahmoud Ahmadinejad has pursued in his second term at presidency. The government is planning to cut the subsidies for petrol, diesel fuel, gas and electricity and instead give monthly allowances to people.

On the other hand US sanctions on petrol and petroleum products has made it difficult for Iran to meet its domestic petrol needs. Following the announcement of US sanctions, many oil companies have announced that they will not sell petrol to Iran.