Bijan Haj Mohammad Reza, the head of the Fuel Station Syndicate, announced among journalists in December of this year that with the decrease in oil prices, reaching $30 per barrel, the government is effectively not paying subsidies for gasoline. According to Mr. Haj Mohammad Reza, since then, the price of gasoline, excluding transportation costs, is equal to the FOB price of the Persian Gulf. The FOB price of the Persian Gulf is the price of gasoline delivered on a ship at the location of the Persian Gulf, meaning that the transportation costs to the delivery location are borne by the seller, and thereafter, the costs of transporting the delivered gasoline to the sales and final distribution location are the buyer's responsibility. Subsequently, some websites and publications critical of Hassan Rouhani's government demonstrated through calculations that the government is now making a profit from selling each liter of gasoline at a fixed price of one thousand tomans. In this 'A, B, Economy', we have compared the price of gasoline in Iran with some neighboring countries and answered the question of whether the gasoline offered in Iran is the cheapest in the world or not.
How Much is Thousand-Toman Gasoline Worth?
Bijan Haj Mohammad Reza announced that the Iranian government is no longer subsidizing gasoline due to falling oil prices. Critics have calculated that the government profits from selling gasoline at a fixed price of one thousand tomans per liter. This situation raises questions about the affordability and pricing of gasoline in Iran compared to neighboring countries.
👥 Key Players
📰 What Happened
Bijan Haj Mohammad Reza announced that the Iranian government is no longer subsidizing gasoline due to falling oil prices, leading to a situation where the government profits from gasoline sales. Critics have raised concerns about the affordability of gasoline for the Iranian public.
- Oil prices have fallen to $30 per barrel, affecting subsidy policies.
- Gasoline is currently priced at one thousand tomans per liter, with government profits being highlighted by critics.
💡 Why It Matters
📚 Background
Iran has historically subsidized fuel prices to support its citizens, but fluctuating oil prices and economic sanctions have strained these policies.
🏷️ Entities Mentioned
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%