Iran-Oil Production-Price Hikes
President Mahmoud Ahmadinejad said increasing oil production cannot be a solution for bringing prices down, stressing that the issue is of political nature and the solution should necessarily be political.

Making the statement in response to a question at a news conference on the sideline of D8 Summit in Malaysia, he further said that the problem of oil price hikes partly originates from the decline in the value of dollar and nobody but the US is responsible for this.

Today, the solution to lowering oil prices is not to increase production because there is a market glut and even Saudi Arabia's announcement to produce more crude could not stop prices from rising, he said, adding that today the market situation is not normal and supply-demand mechanism does not work.

Describing the huge injection of dollars in fiat money to world markets as among the factors responsible for mounting oil prices, he said that for many years the US imposed its problems on nations by doing the same.

Decisions made by the US is another reason for surging oil prices, Ahmadinejad said adding that the US puts pressure on its rivals by artificially hiking oil prices and today China, India, Japan and several other countries are under pressure.

With the rise in oil prices, earnings of the countries who impose heavy taxes have been increased and some European countries put a 70-percent tax on the sales of oil products and their income has become even more than that of producing and exporting countries.