"Rising gasoline prices are not expected to hinder the growth of consumption in Iran," Iranian energy expert told ILNA.
Speaking with ILNA economic correspondent, Morteza Behrozifar said that there can be no significant reduction in petrol consumption just by raising prices so government can reduce consumption by changing infrastructure, developing public transportation and improving the quality of cars.
He referred to possibility to export gasoline to other countries and added that even if we can export, the question is that under which circumstances can gas be exported and to which countries will be exported.
"We are under severe sanctions, and the same restrictions that apply to oil exports are existing for gasoline. We can export only small portion to Iraq, Afghanistan and Pakistan," the expert said.
He confirmed that one of the things that can offset the government deficit is the raising the price of gasoline, but the fact is that the inflationary effects of this strategy are so significant that they ultimately reduce government revenue.
Head of Management and Planning Organization Mohammad-Baqer Nobakht said in a televised speech last week that inflation is not favored by the current administration in Iran and the government is doing its best to reduce the costs of living in the country, but "raising gasoline prices was a legal duty on the administration which should have been accomplished accordingly."