Iran's government states excessively low gas prices on domestic market

Iran's government stated the low efficiency of gas prices on the domestic market. Oil Minister Saeed Masoud Mir-Kazemi believes that Iran's state budget is experiencing considerable strain due to covering the difference between the prime cost and the ultimate cost of gas for consumers.

"The cost of natural gas in Iran is $0.34 per cubic meter, while the subscribers pay for gas only about $0.015 per cubic meter," said the minister, the official website of the National Iranian Gas Export Company (NIGEC) reported.

The minister did not make his proposals to change the ultimate cost of gas on the domestic market of Iran. The growth in gas demand on the domestic market of Iran in April and October 2010 was seven percent compared to the last year, rising to 99 billion cubic meters. During this period, average fuel consumption in the country totaled about 430 million cubic meters per day, or 28 million more than the same period of the last year.

A similar situation occurs in the country with liquefied petroleum gas (LPG), the ultimate cost for consumers amounts to $0.045 per cubic meter at a prime cost of $0.45.


/Trend/