Iran official raises prospect of free market gasoline

A senior Iranian Oil Ministry official hinted the country may start selling gasoline at a higher price in addition to the subsidized amount allocated to drivers under a rationing scheme launched in June.

Deputy Oil Minister Mohammad Reza Nematzadeh was quoted by the IRNA news agency as saying a price for so-called free gasoline had been determined. But another news agency, ISNA, quoted him as saying it was so far only a proposal.


The government has previously said it was not in favour of the idea as it could fuel inflation, already at double digits.

‘The price for free gasoline has been determined,’ he told reporters, according to IRNA. ‘And the price which was studied and ratified is 5,000 rials plus (the current price of subsidised and rationed fuel, 1,000 rials per litre).’ Six thousand rials would be the equivalent of roughly 65 US cents per litre. But Nematzadeh did not say whether this meant the government was now planning to sell fuel at this price or, if so, when.

Iran Oil and Gas Network