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Iran’s trade minister fired amid row over liberalising car market
of vehicles from petrol sales demand would amount to significantly more per annum, officials said.
Iranian President Hassan Rouhani has appointed a caretaker industry, mines and trade minister after firing Reza Rahmani for not following orders, Asbe Bokhar reported on May 12.
Rahmani’s departure appears to have occurred after a big behind the scenes battle over a push by Rouhani to liberalise the car market. Prices on the market have continued to soar in recent days.
Hossein Modares Khiabani has been appointed as the caretaker minister, according to the presidential website.
Rouhani assigned him five main tasks and called on him to pay special attention to plans for a surge in domestic production under the shadow of cruel US sanctions, IFP reported.
Reports in local media suggested that Rahmani's sacking had been in the offing for several weeks and that Rouhani was waiting for a parliamentary decision on allowing the establishment of a specific ministry for trade, something which was rejected by parliament on May 11.
The president also urged Modares Khiabani to step up intra-organisational coordination and work in effective cooperation with the state-run and private sectors.
Industry observers who spoke with ​bne IntelliNews​ suggested that the sacking was part of a wider battle between the ministry and the presidential office, with Rouhani’s office accusing the former minister of blocking progress in liberalising the market.
“In the letter he wrote following his sacking, he said the reason behind his [Rahmani’s] departure was his unsuccessful lobbying of MPs to form the [separated] trade ministry,” one observer, an automotive sector official, said. He added: “Government critics have said the separated ministry would have allowed the liberalisation of the auto market... begging questions about the future of [top two Iranian carmakers] Iran Khodro and SAIPA Group which are part government-owned.”
With Rahmani out of the way, the presidential administration would have a clear path to decoupling the auto market from the current pricing mechanisms, he added.
The past 24 hours have seen SAIPA and Iran Khodro product prices increase markedly following long drawn-out negotiations between the different ministries involved in the price setting.
Following the announcement that increased prices, the government demanded that car dealer websites remove “free market” car prices. Sites like bama.ir started blurring out their car prices.
Some estimates say prices charged have increased by around 60% above regulated prices. The confusion in the market led many potential car buyers to hold off on a purchase until a clearer picture on prices emerged from the scrum of ministers and officials seen over the issue in the past week.
Meanwhile, cars imported into Iran continue to suffer a miserable fate. Thousands of models are stuck in ports and yards around the country. Some have remained frozen in situ for at least two years.
9.1.3 ​Aviation sector news
Iran’s airlines expected to clock up COVID-19 losses
Iranian airlines are set to record losses of around Iranian rial (IRR) 30 trillion ($183mn at the free market rate, $714mn at the government rate) up to April 3 due to shutdowns caused by the coronavirus (COVID-19)
45​ IRAN Country Report July 2020 www.intellinews.com