US Markets

Iran starts gasoline rationing, hikes prices - state TV

Iran introduced gasoline rationing and price hikes on Friday with an official saying that the revenue would be used for subsidies for 18 million needy families, state television reported.

DUBAI, Nov 15 (Reuters) - Iran introduced gasoline rationing and price hikes on Friday with an official saying that the revenue would be used for subsidies for 18 million needy families, state television reported.

Iran, which has some of the world’s cheapest fuel prices due to heavy subsidies and the fall of its currency, has been fighting rampant fuel smuggling to neighbouring countries.

State TV said the price of a litre of regular gasoline was increased to 15,000 rials (12.7 U.S. cents) from 10,000 rials and the monthly ration for each private car was set at 60 litres per month. Additional purchases would cost 30,000 rial per liter.

Mohammad Bagher Nobakht, head of the country's Plan and Budget Organization, told state TV that proceeds from the price hikes would be used to fund additional subsidies for 18 million families, or about 60 million people.

Despite its huge energy reserves, Iran has for years struggled to meet its domestic fuel needs because of a lack of refining capacity and international sanctions that limited the supply of spare parts for plant maintenance.

U.S. President Donald Trump pulled out of an international nuclear deal with Iran last year and reimposed sanctions on Iran's vital oil industry and other sectors.

(Reporting by Dubai newsroom; Editing by Lisa Shumaker)

((dubai.newsroom@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More