|Iran has 5th cheapest gasoline price: report||
TEHRAN – Iran is currently has the fourth-cheapest gasoline price in the world, according to a Bloomberg report which was published on Monday.
Each gallon (about 3.78 liters) of gasoline is sold at $1.52 in the country, according to the report.
Venezuela, Saudi Arabia, Kuwait, and Egypt are the four leading countries with the lowest gasoline prices of $0.04, $0.45, $0.81, and $1.01 per gallon, respectively.
Years of economic sanctions have starved Iran of oil revenues, so that in 2010 the country began a five-year plan to curb its popular energy subsidies.
Iran is the fourth-biggest oil producer and until 2010 had the highest fossil-fuel subsidy in the world. To ease the pain of the subsidy cuts, former President Mahmoud Ahmadinejad started paying everyone about $18 a month to help pay the bills.
The administration of President Hassan Rouhani announced gasoline price hikes as high as 75 percent on April 25, signaling the start of the second phase of the subsidy reform plan.
Subsidies account for 74 percent of the cost of electricity and fuel in Iran, ranking the country in fourth place among members of the Organization of the Petroleum Exporting Countries (OPEC), according to the International Energy Agency (IEA) and the International Monetary Fund (IMF).
In cash terms, the world’s biggest subsidies are in Iran, Saudi Arabia, and Russia, all of which are major oil producers. Subsidies cost these three countries a combined total of $180 billion per year in 2012, Reuters reported in May, citing the IEA and IMF reports.
Iraq, Kuwait, Iran, Saudi Arabia, Venezuela, Libya, the United Arab Emirates, Qatar, Algeria, Nigeria, Ecuador, and Angola are the OPEC member states.
Highest price in Norway
Norway retained the title for world’s most expensive gasoline of $9.79 per gallon, according to Bloomberg.
The Scandinavian country doesn’t subsidize fuel at the pump, using its oil profits instead for national services, such as free college education and savings for infrastructure improvements.
The Netherlands, Italy, Denmark, and Greece rank the next with price per gallon of gasoline at $9.46, $9.34, $9.14, and $8.81, respectively.
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