Subsidy Reform Plan saves Iran $5.3b in fuel consumption

TEHRAN,Jan.12(MNA)--The implementation of the Subsidy Reform Plan has so far saved the country some $5.3 billion in fuel consumption, an official with the Oil Ministry stated. Nasser Sajjadi, the deputy director of the National Iranian Oil Products Distribution Company (NIOPDC), told the Shana news agency that some $200 million, $880 million, $770 million, $2.1 billion and $1.350 billion, have been saved in consuming LNG, gasoline, kerosene, gas oil, and furnace oil, respectively during the implementation of the Subsidy Reform Plan, which started in December 2010. The consumption of four highly-consumed fuels in Iran has declined noticeably since implementation of the reform plan, the NIOPDC managing director said. Jalil Salari said on October 21 that since the enforcement of the Subsidy Reform Plan in the country in December 2010, the consumption of liquefied petroleum gas, gasoline, kerosene, and diesel has cut between 4 and 19 percent. The subsidy reform plan allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.