Natural Gas Price Hike Hits Crypto Miners in Iran – Mining Bitcoin News

The price of natural gas for the production of digital currency in Iran is expected to rise sharply. According to local media, the rates imposed by Iran’s state-run supplier were almost twice the prior and retroactively.

Iran Raises Tariffs for Mining Farms Running on Natural Gas

A company under the Ministry of Petroleum of the Islamic Republic is the National Iranian Gas Company. This informs cryptocurrency miners of an increase in natural gas rates. Financial Tribune reported that the English-language newspaper Financial Tribune had announced the news, citing a Peyvast Magazine report.

According to publication, this increase is retroactive. It covers current fiscal year that began March 20, 222. The new tariffs will affect the billing for the six previous months.

The oil ministry has decided that a cubic meter will cost 53,368 Rials (about $1.25). This is nearly twice what miners were paying before the move, Peyvast stated. A 9% value-added tax (VAT), is due in addition.

The Iran Blockchain Association’s chief executive officer, Abbas Ashtiani described it as a violation. Ashtiani is certain that the increase should have been applied to gas consumption in the first half fiscal year.

More than a third (33%) of crypto farms depend on gas supply and licensed companies will experience heavy losses. Local crypto communities believe that this policy is another bad one that will force more miners underground, especially after disruptions to internet and legal processes.

Iran miners have been partially blamed for the country’s energy deficit and were forced to shut down on number of occasions in the past two years. The price for electricity is paid at export rates by authorized mining farms. Gas prices are set at about 70%.

The global gas price spiked in February when Russia attacked Ukraine, but has been declining since then due to rising European oil reserves and mild falls. Ashtiani pointed out that Iranian gas prices are adjusted when the global rate increases, but not when it decreases.

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Crypto, crypto farms. crypto miners. crypto mining. Cryptocurrencies.

Are you sure that Iranian miners who rely on natural gas will be able to withstand the price rise? Comment below to share your views.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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