Iran: Government Officially Increases Public Transportation Fares

Tehran overnor's Office announced that public transportation fares have been officially increased by 25 percent in Iranian capital.

Hossein Karimi, deputy governor of Tehran Province, said that the new prices will become operational as of May 6, Iran's Mosalas Inline News Website reported on May 4.

Abolfazl Ghena'ati, a member of Tehran City Council, said on April 26 that the prices were supposed to rise as of April 21, but the government asked the City Council to wait until the implementation of the second phase of subsidy reform plan.

Ghena'ati said that a 25-percent increase in taxi fares was decided in the previous calendar year (which ended on March 20).

"The government needs to provide cheaper diesel oil and electricity to the public transportation sector," he said on April 23.

Iranian government increased the prices for gasoline and other energy carriers as part of implementing the second phase of subsidy reform plan.

National Iranian Oil Refining and Distribution Company (NIORDC) announced on April 24 that as of midnight (April 25) semi-subsidized gasoline would be presented at 7,000 rials, while the free market price would stand at 10,000 rials, Iran's Mehr News Agency reported.

Semi-subsidized gasoline was previously sold at 4,000 rials (33 cents), while the free market gasoline price was 7,000 rials.

Iranians with cars will receive a monthly allowance of 60 liters with the semi-subsidized price and have to pay the free market price for larger volumes.

Based on the new prices, semi-subsidized super gasoline and free market super gasoline will also be presented at 8,000, and 11,000 rials, respectively.

Diesel oil will be sold at 2,500 rials, while CNG will be presented at the price of 4,500 rials per cubic meters, according to NIORDC.

Iranians, who still have some semi-subsidized gasoline quota in their cards, can use their stored allowance with the previous price (4,000 rials) until further notice, according to the government.

Iranian Oil Minister Bijan Namdar Zanganeh said on April 23 that the quality of gasoline will be increased in the next [Iranian calendar] year (to start on March 21, 2015).

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