Title: Budget Deliberations to Shape Future Fuel Pricing Strategy
Tehran – As the deadline for submitting the national budget bill for the upcoming Iranian year (1405) approaches, the government and parliament are jointly evaluating comprehensive plans to reform the country’s fuel pricing structure, aiming to address economic imbalances while mitigating public impact.
A Necessary Review
Discussions concerning a potential adjustment to fuel prices are set to be a key part of the upcoming budget bill deliberations. Mohsen Sepehvand, a member of parliament, has emphasized that the rising costs associated with fuel imports have made a review of the final consumer price and supply methods inevitable.
“The real cost of producing and importing energy carriers, including gasoline, electricity, and gas, is significantly higher than the current selling price,” Sepehvand stated. He warned that the continuation of this disparity could lead to a major crisis for the national economy.
Collaborative Plans for Reform
In an effort to find a balanced solution, the government and the Parliament’s Energy Commission are collaborating on drafting proposals for gasoline price reform. The core objective of these plans is twofold: to lessen the economic burden on the public and to gradually bridge the gap between subsidized and open-market prices.
Several scenarios are reportedly under expert review. These include the potential elimination of fuel subsidies for high-income deciles, the introduction of a three-tiered pricing system for gasoline, and the implementation of a staggered, gradual price increase.
High-Level Consensus on the Challenge
Recent months have seen consistent warnings from senior officials about the challenges posed by the current fuel consumption model and its fiscal impact. President Masoud Pezeshkian has previously suggested reallocating resources by reducing subsidies for households with excessively high fuel consumption and directing those savings to support lower-income groups.
Adding to this, Oil Minister Mohsen Paknejad confirmed that specialized studies are underway to definitively resolve the fuel imbalance issue, though a final decision has not yet been reached. The sentiment for reform was further echoed by Parliament Speaker Mohammad Bagher Ghalibaf, who remarked in a recent address, “The government pays significantly more to supply gasoline than its selling price, and the continuation of this situation is not in the best interest of the country’s economy.”
The Budget Bill: The Decisive Blueprint
According to the constitutional schedule, the government is obligated to present the budget bill for the year 1405 to the Islamic Consultative Assembly by the third week of December. This document is expected to outline the administration’s definitive approach to the fuel pricing question.
Despite widespread speculation, no final decision on a fuel price increase for the next year has been officially made. The nation now awaits the presentation of the budget bill and the subsequent detailed review process in parliament, which will ultimately determine the future of fuel pricing policy.