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Iran: Fuel prices to increase 10 percent

gas-station-Tehran

The government of Hassan Rouhani is considering some 10% increase in fuel prices in the coming Iranian New Year begging March 2015.

A member of the Planning and Budget Committee in the regime’s parliament said on Sunday that to reach the goals stated in the targeted subsidy plan a 10% increase in price of energy carriers is being considered.

Gholamreza Kateb, spokesman for the committee said: “To reach $16 billion revenue from targeted subsidies for next year, we will need to increase by 10 percent the average price of energy carriers,” INU reported.

“In the current year, the $16 billion revenue from targeted subsidies has not been achieved and to reach this figure, the fuel prices need to increase. Assessments show that in the current year, revenue from targeted subsidies reached $14 billion, suggesting that to reach $16 billion, an average of 10% increase is needed. Therefore the tariffs for water, electricity, gas and fuel were faced with an increase in the second round of targeted subsidies by the government.”

In December 2014, the government of Hassan Rouhani increased the price of bread, the main nourishment for the vast majority of the Iranian people, by 30 to 40 percent.

This price increase for the essential component of daily food further impoverished laborers and people with a low-income which constitute 90% of the Iranian society.

Some 12 million Iranians are living in poverty according to a senior official of the Iranian regime.
Oil revenues, constituting a significant part of the budget, have fallen sharply since last year. Iran’s national budget for the current Iranian calendar year had been based on an oil price of $100 per barrel and exports of about one million barrels per day.
Hassan Rouhani’s government has been forced to adjust its budget for next year based on a plunging oil price.

Since the Rouhani government has predicted an oil price of $72 a barrel in the budget bill for next year, based on the decrease in oil price to $55 (its further fall may be possible in the future), it is expected that the government will face an ever increasing deficit.
This is while the Rouhani government has increased the security forces budget by 50% for next year – meaning more pressure on the middle and lower classes of society.

The government of Hassan Rouhani is considering some 10% increase in fuel prices in the coming Iranian New Year begging March 2015.

A member of the Planning and Budget Committee in the regime’s parliament said on Sunday that to reach the goals stated in the targeted subsidy plan a 10% increase in price of energy carriers is being considered.

Gholamreza Kateb, spokesman for the committee said: “To reach $16 billion revenue from targeted subsidies for next year, we will need to increase by 10 percent the average price of energy carriers,” INU reported.

“In the current year, the $16 billion revenue from targeted subsidies has not been achieved and to reach this figure, the fuel prices need to increase. Assessments show that in the current year, revenue from targeted subsidies reached $14 billion, suggesting that to reach $16 billion, an average of 10% increase is needed. Therefore the tariffs for water, electricity, gas and fuel were faced with an increase in the second round of targeted subsidies by the government.”

In December 2014, the government of Hassan Rouhani increased the price of bread, the main nourishment for the vast majority of the Iranian people, by 30 to 40 percent.

This price increase for the essential component of daily food further impoverished laborers and people with a low-income which constitute 90% of the Iranian society.

Some 12 million Iranians are living in poverty according to a senior official of the Iranian regime.
Oil revenues, constituting a significant part of the budget, have fallen sharply since last year. Iran’s national budget for the current Iranian calendar year had been based on an oil price of $100 per barrel and exports of about one million barrels per day.
Hassan Rouhani’s government has been forced to adjust its budget for next year based on a plunging oil price.

Since the Rouhani government has predicted an oil price of $72 a barrel in the budget bill for next year, based on the decrease in oil price to $55 (its further fall may be possible in the future), it is expected that the government will face an ever increasing deficit.
This is while the Rouhani government has increased the security forces budget by 50% for next year – meaning more pressure on the middle and lower classes of society.