No price hike for diesel planned until March 2020: Iranian minister

An Iranian minister says there has been no plan in the government for increasing the price of diesel in the country after an abrupt decision to increase the price of gasoline sparked concerns about similar moves on other fuels.

Reza Rahmani, who heads Iran’s Ministry of Industry, Mine and Trade in the government of President Hassan Rouhani, said on Monday that a price hike for diesel, a fuel widely used in Iran’s road transportation system, would not take place at least until the end of the current Iranian calendar year in March.

“The president has elaborated on this issue that no price hike would take place for ... diesel at least until the end of this year,” said Rahmani while speaking to lawmakers in the Iranian parliament.

The comments come more than a week after the Iranian government increased the price of unsubsidized gasoline by three times while imposing restrictions on the regular delivery of the fuel to motorists.

The decision sparked protests and riots across Iran as many were taken by surprise at the abrupt nature of the hikes.

Almost a fifth of Iran’s gasoline output smuggled abroad: Report

Government data shows almost a fifth of Iran’s gasoline output is smuggled outside the country.

The government has defended the move, insisting that fuel price hikes are needed to contain rampant smuggling at the borders and increase efficiency.

Diesel is already pumped across Iran based on a two-tier pricing system which takes into account the distance traveled by the trucks and other container lorries.

However, the prices, $0.025 and $0.050 for each liter of diesel, are very low compared to the neighboring countries, prompting the government to consider plans, including a slight increase, that could prevent smuggling.

Experts believe that diesel is more difficult than gasoline when it comes to the regulation of prices by the Iranian government as the fuel is widely used in farming units and also by the small manufacturers across the country.

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