Today.Az » Analytics » Iranians pay only 9 percent of fuel price
25 June 2014 [15:40] - Today.Az
By Dalga Khatinoglu, Trend
Iranian oil minister said that the country's citizens are paying less than 9 percent of their consumed liquid fuel price.
Bijan Namdar Zanganeh said that the government is paying the rest of the cost via subsidies.
Head of Iran Energy Efficiency organization (IEEO), Hossein Sajjadi,
previously said that annually the equivalent of 1,600 million barrels of
oil equivalent is being consumed domestically. He said that around 400
million barrels of the mentioned amount, or 25 percent, is being wasted
in the transferring process, and just 1,200 million barrels of oil
equivalent are being consumed by the consumers.
IEEO's latest annual report also suggest that Iran's energy
consumption in 2013 was less than 1.06 billion barrels, which means that
in the past two years, energy consumption in the country has increased
by 140,000 barrels oil equivalent.
According to the report, Iran's per capita gas and oil products'
consumption is 6 and 1.6 times more than the global average,
respectively, while the Iranian government is paying the loin share of
the country's total energy carriers' consumption.
Iranian Oil Minister Bijan Namdar Zanganeh said on June 24 that
currently over $90 billon worth of liquid fuel is being consumed in
Iran. He added that the government pays $80 billion of the mentioned
figure.
The Iranian government has increased energy carriers' prices twice
since December 2010 as part of the Subsidy Reform plan, but, on the
other hand the country's national currency, the rial, has lost around
two third of its value since then.
The exchange rate of US dollar in December 2010 was around 10,550 rial, while it stands at 30,170 rials now.
Fuel prices in Iran (USD price has been calculated with the average price of USD at the same year)
Consumption
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USD current exchange rate: 31,700
|
USD exchange rate in 2012: 32,000 rials
|
USD exchange rate in 2010: 10,500 rials
|
Energy carrier
|
390 million cubic meters
|
1,000 rials
|
700 rials
|
100 rials
|
cubic meter of gas
|
3.2 cents
|
2.1 cents
|
1 cents
|
70 million liters
|
10,000 rials
|
7,000 rials
|
1,000 rials
|
liter of gasoline
|
32 cents
|
21 cents
|
10 cents
|
5,500 tons
|
2,100 rials
|
1,000 rials
|
300 rials
|
liter of liquid petroleum gas
|
7 cents
|
3.1 cents
|
3 cents
|
100-105 million liters
|
4,500 rials
|
3,500 rials
|
160 rials
|
liter of diesel oil
|
15 cents
|
11 cent
|
1.5 cents
|
8 million liters
|
1,500 rials
|
1,000 rials
|
200 rials
|
liter of kerosene
|
5 cents
|
3.1 cents
|
2 cents
|
51 million liters
|
2,500 rials
|
2,000 rials
|
120 rials
|
liter of mazut
|
8 cents
|
6.3 cents
|
1.2 cents
|
17 million cubic meters
|
5,000 rials
|
3,000 rials
|
400 rials
|
cubic meters of CNG
|
18 cents
|
10 cents
|
4 cents
|
Beyond liquid fuels, Iran's domestic consumption of electricity was
around 200 terawatt hours in the previous year. The price of one
kilowatt hours of electricity is around 450 rials (1.5 cents) in Iran.
It is while the price of one kilowatt hours of electricity in, for
instance the United States was over 12 cents in April.
Gas accounts for over 60 percent of Iran's total energy consumption.
The price of gas in Iran is way below the global average. Iran sells
each cubic meters of gas at the price of 3 cents to its citizens, but
exports the same amount of gas to Turkey at the price of 45 cents.
As Iran's oil minister said, the country's residents pay only for 9
percent of their liquid gas price, but considering the price of gas and
electricity it means that Iranians pay much less than 9 percent of their
total energy consumption.
On the other hand, about 27 billion liters of liquid fuel was burnt
in power plants last year, indicating a 25 percent increase over the
previous year due to a gas shortage in winter, while the average
efficiency of thermal power plants in the country is about 37 percent.
This is a huge loss for Iran.
Dalga Khatinoglu is specialist on Iran's energy sector and Iran News Service head in Trend Agency
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