TEHRAN Oct 26 (Shana): The head of Economic Subcommittee of the Majlis Planning and Budgeting Committee has said that the monthly payment of cash handouts poses serious challenge to holding companies of Petroleum Ministry.Jaafar Qaderi said the withdrawal of sums from the resources of National Iranian Gas Company (NIGC), National Iranian Oil Refining and Distribution Company (NIORDC) and other state-run companies do not conform with the law.
He said that the Subsidy Reform Organization, established by the previous administration, has paid handouts in contravention of the law.
As long as the net costs are not paid to holding companies, they will not be able to implement their development projects, he added.
Qaderi said NIORDC cannot currently afford its fuel transport costs and has in certain occasions had to pay for its development and overhaul projects through selling bonds.
We have to move towards making the companies self-sufficient to finance their development projects, he added.
In another development the government spokesman Mohammd Bagher Nobakh stated that the government was examining rising energy carriers prices.
Speaking on the sidelines of an open session of the parliament, Nobakht said an especial working group has been set up at Planning and Strategic Supervision Department of presidency to examine rising energy prices the official said.
Minister of Economic Affairs and Finance, Ali Tayyeb Nia, took part in a session held in the parliaments Industry and Mines Committee on Tuesday to discuss stopping government handout to the three upper deciles of the society. According to the minister, the government has started examining the issue since three months ago and it is on the verge of taking a final decision on cash handouts as well as the prices of energy carriers.
Meanwhile the managing-director of National Iranian Oil Products Distribution Company (NIOPDC) stressed the need for selling oil products at single price.
Mostafa Kashkouli told Shana in an interview that single pricing system for oil products will boost the security of smart fuel distribution system.
Multiple price supply of oil products will prevent the realization of revenues forecasted by the government, he said.
He added that multiple pricing system will also stoke inflation and give rise to psychological consequences.
Kashkouli noted that some profiteers will be attracted into oil products distribution system if multiple pricing to be continued.
Among other negative impacts of multiple pricing, he said, were higher supervision and control costs and ineffective distribution of oil products.
Multiple-price supply will also facilitate fuel smuggling and insecure consumption of liquefied petroleum gas destined for households in the transportation sector, warned Kashkouli.
By SHANA
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