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Natural gas price hike hits crypto miners in Iran – Mining Bitcoin News
Companies that use natural gas as a power source to mint digital currency in Iran will have to deal with a sharp increase in the price of the fuel. The new prices set by the state supplier are almost double the previous ones and have been imposed retroactively, local media reported.
Iran raises tariffs on mining farms that run on natural gas
The National Iranian Gas Company, an enterprise under the Ministry of Petroleum of the Islamic Republic, has informed cryptocurrency miners of an increase in natural gas prices, the English-language daily Financial Tribune announced, citing a report from Peyvast Magazine.
According to the publication, the increase is retroactive and covers the current financial year, which started in March 2022. This means that the bills for the last six months will be adjusted according to the new rates.
As a result of the decision taken by the oil ministry, a cubic meter of the fuel will now cost 53,368 rials (around $1.25), which is almost double the price of 29,440 rials that miners used to pay before, Peyvast noted. In addition, 9% value added tax (VAT) must also be paid.
Abbas Ashtiani, executive director of the Iran Blockchain Association, described the move as a breach. He is convinced that the increase should not have applied to gas consumption in the first half of the financial year.
Over a third of the crypto farms in the country depend on gas supplies, and many of the licensed firms will suffer heavy losses. The local crypto community believes that after internet disruptions and legal proceedings, this is yet another wrong policy that will push more miners underground.
Iranian miners have been partly blamed for the country’s energy deficit and were forced to shut down on several occasions in the past two years. Authorized mining farms pay for their electricity at export prices, and the price of gas is set at around 70% of the export average.
Global gas prices rose after Russia launched its invasion of Ukraine in late February, but have fallen recently due to the mild fall and growing reserves in Europe. Ashtiani noted that Iranian gas tariffs are usually adjusted when global rates rise, but not when they fall.
Do you think Iranian miners who depend on natural gas supplies will survive the current price increase? Share your thoughts on the topic in the comments section below.
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