Title: Iran Refines Fuel Subsidy System to Enhance Efficiency and Equity
In a significant move to optimize its national fuel subsidy program, the Islamic Republic of Iran has announced a comprehensive set of new regulations. These measures are designed to streamline resource allocation, promote economic justice, and ensure the long-term sustainability of the subsidy system for the benefit of all citizens.
Revised Subsidies for Government and Imported Vehicles
A central component of the new policy is the adjustment of fuel quotas for specific vehicle categories. Official government vehicles, identifiable by their special red license plates, will no longer receive fuel at the lower, subsidized rates. Instead, they will be required to purchase fuel at the higher, 5,000 Tomans per liter price.
This change also extends to imported foreign vehicles. All foreign cars imported into the country will now be ineligible for the 1,500 and 3,000 Toman subsidized fuel quotas. This decision impacts a substantial number of vehicles, with official statistics indicating the import of approximately 100,000 foreign cars in recent years. Furthermore, an additional 100,000 vehicles registered in the country’s free trade and special economic zones will also transition to the 5,000 Toman fuel price.
New Rules for Multi-Car Owners
To ensure a more equitable distribution of subsidies, the government has introduced a pivotal rule for private citizens who own more than one fuel-powered vehicle. These individuals will now be eligible to receive the subsidized fuel quota for only one of their vehicles.
Karamat Vise Karimi, Managing Director of the National Iranian Oil Products Distribution Company, elaborated on this policy. He stated that a new system will be established, allowing multi-car owners to declare their vehicles and select which one will receive the subsidized quota within a designated timeframe. For those who do not self-declare, the authorities will automatically assign the subsidy to one vehicle and revoke it for the others. This measure is expected to affect a significant number of vehicles, further optimizing the subsidy framework.
Clarification on Fuel Cards and Future Plans
Addressing public inquiries, officials confirmed that vehicles excluded from the lower-priced quotas will still be issued fuel cards. These cards will be charged with a monthly allocation of 160 liters of fuel, but at the 5,000 Toman rate.
The use of emergency fuel cards at stations will also be priced at this higher rate. Looking ahead, the government plans to phase out these station cards entirely, as data indicates that 80% of vehicles do not require more than the 160-liter monthly allocation. This shift is expected to streamline the process, with the majority of citizens relying on their personal fuel cards.
This overhaul represents a strategic step by the Iranian government to modernize its fuel subsidy system, prioritizing responsible resource management and fairness for the populace.