15 May 2007 - 10:38
  • News Code: 104687
Fuel Rationing Confirmed

TEHRAN -- Majlis is ready to ratify any bill to ration gasoline but the government is not prepared to allocate subsidies, said a lawmaker.

Hassan Moradi, member of the Majlis Energy Commission, said on Sunday that he did not follow his proposal to allocate a 430,000-rial subsidy on gasoline to the low income strata of the society because it was not feasible.

“The fact that currently the government is not ready to provide any subsidies is keeping such plans on hold,“ he said in a report published in Iran Daily.

Moradi added that MPs contend free-market sale of gasoline should be allowed in order to reduce the pressure of rationing, while certain members of the cabinet oppose saying that only state-owned cars should be entitled to using free-market petrol.

Another member of the Majlis Energy Commission Hossein Nejabat told YJC that the government has rationed petrol based on the amount that will be imported according to this year’s budget bill.

Another MP said Sunday a double-urgency plan on realistic gasoline price would be submitted to the Majlis if gasoline rationing was not implemented in due time.

“If the government fails to enforce the 2007 Budget Law on gasoline by May 22, we will present the new proposal to the Majlis,” underlined the Energy Committee rapporteur Seyed Abdolmajid Shoja.  

The plan signed by 40 lawmakers would urge the government to allot every people 300 thousand rials ($32) per month in compensation for the unsubsidized gasoline, he told reporters on the sidelines of an open session of parliament.

Shoja emphasized that gasoline rationing would not come into effect as of May 22 since the technology to enforce the plan was not yet ready.

Referring to the negative consequences of the initiative the official added, “The cabinet and Majlis need to discuss the issue more seriously.”

Last wee, a double-urgency plan for amending Clause V of note under Article 13 of the current year’s budget bill, which called for considering a one-tier pricing system for gasoline and had been signed by 37 members of parliament, was rejected through voting, getting 108 nays.

The plan called on the government to sell domestically produced gasoline in addition to imported gasoline up to a ceiling of 22,250 billion rials, equivalent of foreign exchange at 1,500 rials (16 cents) per liter.

The lawmakers said lack of the government’s readiness to enter into force a gasoline rationing system as well as people’s concerns and dissatisfaction over the rationing as the main reasons for rejecting the plan.

The plan had noted that since a two-tier price system would be more concerning to people than a single price, double urgencies of the plan should be approved by the MPs.

After voting, the plan was rejected through 108 nays, 66 ayes, and 6 abstentions.

News Code 104687

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