Companies in Iran which use natural gas as a power source to mint digital currency may face a significant hike in fuel prices.
As per local media reports, the new rates set by the state-run supplier are nearly double the old ones and have been imposed retrospectively.
The hike, as per the publication, is retroactive and applies to the current fiscal year, which began in March 2022. This means that the invoices for the previous six months will be modified to reflect the new rates.
As a result of the oil ministry's decision, a cubic metre of fuel will now cost 53,368 rials (about $1.25), over double the previous price of 29,440 rials. In addition, a 9% value added tax (VAT) is also levied.
The Iran Blockchain Association's chief executive officer, Abbas Ashtiani, called the move a violation. He believes that the increase should not have been applied to gas consumption in the first half of the fiscal year.
Over a third of the country's crypto farms rely on gas supplies, and many of the permitted enterprises would incur significant losses. The local crypto community argues that, after internet outages and legal procedures, this is another poor strategy that will drive more miners underground.
Iran miners have been blamed in part for the country's energy shortfall and have been forced to shut on several occasions in the last two years. Authorized mining farms pay export rates for power, while gas prices are set at roughly 70% of the export average.
Global gas prices increased after Russia launched its invasion of Ukraine in late February, but have since fallen due to the mild fall and increased European reserves. Ashtiani noted that Iranian gas pricing are frequently modified when global rates increase but not when they fall.
Do you believe Iranian miners who rely on natural gas supplies will be able to survive the current price increase? Please leave your views in the comments box below.
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