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**Table 15: New fuel prices in the Islamic Republic of Iran in phases 1 and 2 of subsidy reform**

|Fuel|unit|Dec<br>Rls/unit|2010<br>US$/unit|Apr<br>Rls/unit|2014<br>US$/unit|
|---|---|---|---|---|---|
|Regular gasoline within quota<sup>a</sup>|liter|4,000|0.39|7,000|0.28|
|Regular gasoline outside quota|liter|7,000|0.67|10,000|0.40|
|Super gasoline within quota<sup>a</sup>|liter|5,000|0.48|8,000|0.32|
|Super gasoline outside quota|liter|8,000|0.77|11,000|0.44|
|Diesel within quota|liter|1,500|0.14|2,500|0.10|
|Diesel outside quota|liter|3,500|0.34|5,000|0.20|
|Residential kerosene|liter|1,000|0.10|1,500|0.06|
|Residential furnace oil|liter|2,000|0.19|2,500|0.10|
|Residential LPG sold in 11‐kg or smaller cylinders|kg|1,000|0.10|2,100|0.08|
|Residential LPG sold in larger cylinders<sup>b</sup>|kg|5,000|0.48|6,500|0.26|
|Natural gas for electricity generation<sup>c</sup>|mcf|22,653|2.18|22,653|0.91|

_Sources: Platts Commodity News_ 2014a, _Trend_ 2014.

a. The quota for private car owners is 60 liters per month. In February 2015, the quota for inter‐city taxis was decreased from 900 to 750 liters per month, and for taxis capable of running on both gasoline and natural gas from 600 to 500 liters. The quotas for city taxis are 500 liters for gasoline‐only and 300 liters for bifuel.

b. The price of LPG sold in larger cylinders was raised to Rls 6,000/kg in July 2013.

c. The price of natural gas for the power sector has remained at Rsl 800/cubic meter.

# **Jordan**

After several false starts, the Government of Jordan discontinued fuel subsidies and began adjusting fuel prices monthly at the end of 2012, with the exception of LPG. To that end, in November 2012, the government raised the price of LPG sold in 12.5‐kg cylinders by 54 percent, kerosene and diesel by 33 percent, and regular gasoline (90 RON) by 14 percent (http://www.jopetrol.jo/). Although the price increase was the largest for LPG, the new retail price was still below cost recovery. Jordan’s currency is fixed at 0.709 dinar to the dollar, obviating the need to adjust fuel prices for currency fluctuations.

To help households cope with price deregulation, the government introduced a cash transfer program covering 70 percent of households. Cash is transferred to households earning less than JD 10,000 (US$14,000) a year at a rate of JD 70 (US$100) per person up to six members per household annually, provided that the oil price is above US$100 a barrel. To sharpen targeting, the government later tightened the eligibility criteria by adopting proxy means testing that took into account not only wage income but also consumption and asset indicators. In 2014, the government specified asset thresholds for cars, land, and real estate ownership. The government further developed the national unified registry database in the Income and Sales Tax Department to link it to other databases and rank families according to proxy‐means test scores (IMF 2014e).

The price of LPG sold in 12.5‐kg cylinders, intended for household use, had been fixed for years at JD 6.5 per cylinder, or US$733 per tonne (US$0.73 per kg), and then raised and fixed at JD 10 per cylinder (US$1,128 per tonne) between November 2012 and December 2014. During the same period, Saudi Aramco’s contract price for LPG rose above US$1,000 per tonne on several occasions, and exceeded the