Rising Fuel Price Will Have A Negative Effect On Iran's Car Market
Unofficial resources announced that the fuel price will be at least doubled but what are its effects on domestic car market?
Khodrocar – Since the start of the twelfth government, there were rumors about the increase of gasoline price. The idea behind that was to reduce the traffic.
However, some experts believe that the increase in fuel prices does not affect car sales and traffic because in the recent years, the fluctuations in fuel prices didn’t affect the domestic car sales at all.
Mohammadreza Najafi Manesh, member of Iran’s Chamber of Commerce, told Khodrocar regarding the issue: "The increase in the fuel prices will not have any effects on the car market, like the recent years. This rule is also the same for the increase in the production of fuel efficient cars.”
This member of the Chamber of Commerce stated that, at present the gasoline prices in Iran are low compared to other countries and added: "Even if the price is doubled, still fuel prices are lower in Europe.
There have long been whispers about rising gasoline price among officials, especially between decision makers in the country's fuel field and according to the plans, gasoline price will increase since the beginning of the year 97.
Naser Raeisi Fard, Head of Gas Station Owners Guild, also told Khodrocar regarding the issue of the increase in gasoline price: "My colleagues and I hope that the gasoline price will increase by at least 50 percent by the end of this year and early next year.”
Yesterday Abbas Akhoundi, Minister of Roads & Urban Development said that country road problems will be solved with the increase of gasoline price and also the Deputy Minister of Roads & Urban Development said that the cheapness of gasoline price is our main problem and the government has no solutions for it.
History of Gasoline Price Increase From The Year 1386 to 1396
In the presidential term of Ahmadinejad in the year 1389, the gasoline price increased for the first time.
Then in the first presidential term of Hassan Rouhani, the gasoline price increased once again and now there are rumors about the third increase in the fuel prices since 1386.
Khodrocar reporter: Negar MirKarimi
Khodrocar translator: Maziyar Jafarieh
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