Iran is to increase price of natural gas supplied to households, businesses, and state-run building by 15% compared to last year, while leaving natural gas price for industries intact.

Managing Director of the National Iranian Gas Company Hamid Reza Araqi told reporters on Tuesday that while price of gas supplied to households, businesses and state-run buildings will increase 15% compared to last year according to a decision notified to the company by the Iranian administration, price of gas supplied to industries, petrochemical complexes, and animal husbandry sector will remain unchanged.

He added that the decision will be put in gear as of Wednesday (tomorrow), and reading of household and business gas meters will be carried out in line with the new prices.

“Since the administration was aware than natural gas accounts for 70% of the country’s energy basket, it decided not to raise natural gas price too steeply,” the official said.

Araqi noted that gas consumption in Iran amounts up to 180 bcm per year, adding, “Of this figure, 50 bcm is consumed by households, but the consumption can be decreased and more gas can be saved through optimized consumption.”

Araqi’s comments come after another NIGC official warned about the rising consumption of natural gas in the country.

On April 27, Abdolhossein Samari, NIGC’s deputy director for operations, said Iran will not have enough gas to supply households in the near future if no measure is taken to contain the current pace of “wasteful consumption” of the crucial fuel.

“Energy consumption in Iran is three times higher than the international standards,” Samari was quoted by Iranian media as saying.

He added, “If consumption is not reduced to match the international standards, the country’s gas production in the near future will not be enough even to satisfy the demands of households and businesses.”

Iran’s proven reserves of natural gas stand at 33.6 tcm (about 18% of global reserves), making the country one of the top two countries along with Russia with regard to conventional gas reserves.

Source: Press TV