Iran's gasoline consumption hits 55 million litres

Second round of subsidy cuts comes into effect.

Gasoline prices rise to 7,000 rials .
Gasoline prices rise to 7,000 rials .

Iran's average gasoline consumption hit 55 million litres after the implementation of the second phase of subsidy reform plans came into effect, according to news website Eghtesad.

The Iranian government implemented the second phase of the subsidy report plan, aimed to cut subsides, on April 25. The first phase of the plan was implemented in December 2010.

The Iranian government supplies gasoline in two terms, limited semi-subsidised gasoline which is charged to citizens' fuel cards and free market priced gasoline.

National Iranian Oil Refining and Distribution Company (NIORDC) announced on April 24 that as of midnight (April 25) semi-subsidized gasoline price increased from 4,000 rials to 7,000 rials, while the free market price increased from 7,000 rials to 10,000 rials.

Each USD is sold at 32,200 rials in Iran's free market. According to the government, 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.

Some 2 billion liters of semi-subsidised gasoline (with the price of 4,000 rials per liter) is stored in the mentioned cards.

The remaining semi-subsidised gasoline (with the price of 4,000 rials per liter) accounted for 50-60 percent of the total consumption during the last several days, the report said.

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

Iran's gasoline consumption level during last fiscal year, ended on March 20, reached to 27 billion liters - or 67 million liters per day-, indicates a 3.2 billion increase year-on-year.

A month before implementation of the second phase of subsidy report plan, Iran's daily gasoline consumption soared to 94 million liters per day due to 14-day new year holidays and storing the gasoline by people who tried to buy the cheap fuel as much as possible before increasing the prices.

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