TEHRAN, April 14 (MNA) – The head of Management and Planning Organization (MPO) here Saturday assured that the government would soon offer a bill to Majlis (Iranian parliament) in a bid to prevent any increase in the price of gasoline.

Minister of Petroleum Seyyed Kazem Vaziri-Hamaneh said if Majlis approved the government bill, the price of gas would not increase and would be supplied at 800 rials (8.6 cents) per liter as of May 22.

Last March, the Majlis approved that the government could sell rationed gasoline at 1,000 rials (less than 11 cents) per liter through smart cards. The lawmakers also authorized the cabinet to determine the price of gasoline sold in excess of the rationed quota.

The government is obliged to sell the domestically produced gasoline and imported gasoline at the subsidy level of 22.25 trillion rials (2.4 billion dollars) on rationing scheme with priority given to gasoline smart card at the price of 1,000 rials per liter.

Amir-Mansur Borqei, the MPO chief, talking PIN added the government believed that the 2,000 rial (2.1 cent) hike was not a meaningful difference and its psychological effect on the society’s economy would overshadow the state revenue.

The official, however, said if the view of Majlis were different from the government’s, the cabinet would enforce the lawmakers’ approval immediately.

He added the government’s policy underlined close interaction with the Islamic Consultative Assembly.

“The Supreme Leader (Ayatollah Ali Khamenei) has named the current year “The Year of National Unity and Islamic Cohesion” and we are duty-bound to pave the way for boosting unity,” said the official.

The rationing of gasoline was the main part of monitoring fuel and would be put into practice at due time, Borqei said. Chairman of Majlis Energy Committee Kamal Daneshyar told PIN: “If the government bill also calls for writing off the gasoline rationing, we will oppose it.”

Supporting the gasoline rationing, the MP said this would prevent irregular and excessive use of petrol by the people.

“The consumers who want more than their quota must pay the unsubsidized imported price,” he noted.

Daneshyar agreed with the president that a mere 200 rial rise in the gasoline price would not be very effective and could even negatively affect the prices of other commodities.

However, he stated, the rationing would help reduce the $3.5 billion annual subsidies, drop in consumption due to the quota system and an increase in government revenues. “Fuel consumption is important to both the government and people,” said the president, adding, “In addition to inclusion of Note 13 in the Budget Law, another bill has been submitted to Majlis that calls for management of fuel in the transport sector.”

The government spent almost four billion dollars on gasoline imports during March 2006-January 2007, recording a significant rise compared to the same period the in its preceding year.

A report issued by the Ministry of Economic Affairs and Finance indicated that petrol import costs rose by 187 percent in the 10-month period, when 35.8 trillion rials ($3.9 billion) were spent on gasoline imports, up from 12.4 trillion rials spent during the same period the year before.

The government was authorized under the 2006-2007 Budget Law to spend 33.5 trillion rials, but according to the report, it spent almost seven percent more.