The government will no longer allocate subsidized gasoline to passenger vehicles at a price of 70,000 IRR, and regular gasoline will be offered at a single price of 10,000 IRR (around 30 cents) for car owners nationwide without quota, while unleaded gasoline will cost 12,000 IRR per liter, deputy oil minister said in a statement. This will affect the Cement and Iron ore industries in the market negatively as both of these rely fully on ground transportation and this hence would result in a raise in cost prices of the final products of these companies, which is not good news for their shareholders.
“It’s expected that the exchange prices turn to a single exchange rate in the Petrochemical Industry soon “The CEO of the National Petrochemical Co. said. Existence of two official and free float exchange rates has made so many problems for this industry. He mentioned that some of the petrochemical complexes have no willingness for selling their products to other domestic companies with official exchange rate since they are able to export with higher free rates. However, during the meeting between Seyf, the chief of central bank of Iran, and PMs ; last night, some issues of the exchange market were discussed in order to support the domestic producers, and Seyf clarified that “at this moment with regard to the nation’s economic situation, having a single exchange rate is not possible”.