FNA - Iranian Vice-President and Head of the Management and Planning Organization (MPO) Mohammad Baqer Nobakht said that a total sum of $2.5 to $2.4 billion is estimated to be earned from the gas price hike in the country, adding that the whole amount is planned to be distributed among 18 million families of lower economic status.

Nobakht said late on Friday that between 63 to 64 million liters of rationed gas is distributed in all gas stations across the country, adding that it means that the 50% increase in the price of the gas will bring in revenues between $2.4 to $2.5 billion which will be funded for paying additional subsidies to less-privileged classes of the society.

The official added that according to estimations, the government is currently offering around $108 billion hidden subsidies and the correction in gas price will recover around $2.5 billion of objective-less subsidies.

Late on Thursday, the National Iranian Oil Products Distribution Company (NIOPDC) issued a statement to recount details for new prices of rationed gas in the country, adding that there will be no change in diesel and CNG prices.

According to the new pricing echelon, the subsidized fee of 10,000 rials (almost 8.3 cents) per liter is increased to 15,000 rials (almost 12.5 cents) per liter, a 50% rise, which is offered at a limited rate of 60 liters per month, a rationing that did not exist for the last 6 years, for private cars with a rationing card.

However, the price for not-rationed supply of the gas is still subsidized and below the level of price offered in majority of the neighboring countries. The non-rationed price is set at 30,000 rials (almost 25 cents) per liter and there is no limitation for buying non-rationed fuel.

The statement, further added that the price for the compressed natural gas (CNG) and diesel gas will remain unchanged.

The move is hoped to discourage fuel smugglers who come up with very creative methods to smuggle the fuel out of Iran to neighboring countries.

Early in November, Police Chief of the Southeastern province of Sistan and Baluchistan Brigadier General Mohammad Qanbari said that the attracting crime of fuel smuggling out of Iran is being seriously fought, adding that his forces have confiscated nearly 7.8 million liters of smuggled fuel since the start of the local calendar year on March 21.