Parliament will use all tools to prevent severe inflation after fuel price change: MP

TEHRAN, Nov. 20 (MNA) – An Iranian lawmaker said that the Parliament will support the decision to ration and increase gasoline price but will do its best to prevent further inflation after the implementation of the plan.

“Following the remarks of the Islamic Revolution Leader, the Parliament is required to support the decision made by heads of three branches [on revising gasoline price] but we will certainly make best use of our supervisory tools to make sure that gasoline rationing scheme would not lead to severe inflation in the country,” MP Mohammad-Ali Pourmokhtar, a member of Velaie faction of the Parliament, told Mehr News Agency on Wednesday.

On Friday, Iran began rationing gasoline and substantially increased the price of fuel, saying the revenue would be used to assist the needy. The National Iranian Oil Products Distribution Company (NIOPDC) said in a statement late Thursday that the price of a liter of regular gasoline had gone up to 15,000 rials (12.7 US cents) from 10,000 rials and the monthly ration for each private automobile was set at 60 liters per month. Additional purchases would cost 30,000 rials per liter.

The MP said that 4% of inflation is the maximum amount that can be allowed after the implementation of the new fuel scheme, adding, “if the price of commodities and services rise more than the limit, MPs will surely warn the respective ministers; because no individual has the right to increase prices on their own due to gasoline price hike.”

“Revenues driven from the increase in gasoline price should be exclusively allocated to individuals who are in need, which includes 18 million families. And not even one rial of that should be included in the country’s budget; the administration cannot withdraw this revenue to conduct other affairs.”

The Parliament may also negotiate with the government to increase the gasoline ration of some sectors, Pourmokhtar said.

MNA/4776546

News Code 152490

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