Iran's energy sector review

Imports of steel in Iran have decreased by 44 per cent during the first 11 months of the current Iranian calendar year (March 20, 2012-February 18, 2013), while prices have increased by over 100 per cent. The giant steelmakers of the world have stopped or reduced their trade with Iran due to banking and economic sanctions which were imposed on Iran by the EU in November last year. This issue along with cutting the provision of the official rate of the dollar to domestic steel importers by the Iranian government led to a sharp rise in steel prices in the second half of the previous year, so that prices rose by over 100 per cent. On Tuesday, Reuters reported that South Korea's POSCO, which is the world's fifth largest steel producer, has cut its ties with the Iranian government and is doing limited trade just with private companies. The secretary of the Association of Iranian Steel Producers, Rasoul Khalifeh-Soltani, announced on Tuesday that imports of crude steel and pr...

A member of the Iranian parliament has reported that the Iranian government is insisting on increasing fuel prices by 4.5 times, aiming to gain 1250 trillion rials (about $102 billion based on current official USD rate) in revenue. The government expects expenditures of 1,200 trillion rials (about $98 billion) in the next solar year's budget bill. The bill will likely be ratified by Parliament; this figure shows an approximately 82 percent rise compared to the current year's figure. Iran's solar year will start on March 19. The Iranian government has cut a part of energy carriers' subsides since December 2010, but insists on implementing the second phase of the subsidy reform plan. The parliament has passed a bill and set the government's revenues through freeing up prices at 560 trillion rials (about $46 billion). The Ahmadinejad administration pays 450,000 rials (about $37) per capita to over 72 million Iranians, equaling $3 billion per month. According t...