6 May 2007 - 14:26
  • News Code: 103945
Lawmakers Reject Gas Oil Price Hike

TEHRAN – Gas oil price would not increase in Iran as 103 representatives of the Islamic Consultative Assembly (Majlis) voted for the government’s bill here Sunday.

The state bill received the nod from the majority of lawmakers and the commodity would be supplied at the same previous 165 rials (1.7 cents) per liter by the end of current Iranian calendar year (March 20, 2008).

Putting the bill to the vote, the MPs agreed to delete the phrase “450 rials (4.8 cents) per liter of gas oil as of May 22” and not ration the energy carrier.

The parliamentarians also voted against other proposals on the supply of gas oil at one of the 250, 300, 350, and 400 rial (2.7, 3.2, 3.7, and 4.3 cents) rates.

Submitting the bill to the Majlis, the cabinet justified that the gas oil hike would increase the inflation rate and transportation costs and reduce the people’s affordability.


Last March, the Majlis approved that the government could sell rationed gasoline at 1,000 rials (less than 11 cents) per liter through smart cards. The lawmakers also authorized the cabinet to determine the price of gasoline sold in excess of the rationed quota.

Head of Planning and Budget Committee of Majlis said there was no room for concern about the rationing of gasoline as of May 22.

Reza Abdollahi told reporters it was better to sell gasoline at the open market rate, but Majlis had decided to ration the commodity through the smart card system and the MPs defended the approval.

“The government has made the necessary arrangements for supplying the rationed gasoline, including the distribution of fuel smart cards and the project faces no problem,” he added.

Abdollahi said the lawmakers attached great importance to the perfect enforcement of the law on gasoline rationing.

Fuel smart card project would become operational in Iran on May 10, the advisor to deputy minister of petroleum for refining and distribution affairs announced.

Abdolreza Amini told PIN the smart card system had been put into operation in some gas stations since few days ago in order to identify and remove the problems.

The number of smart card-equipped gas stations was growing gradually, said the official.

Amini pointed to massive dissemination of information about the use of smart card, adding the general public would get further information in the coming days.

News Code 103945

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