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Worries About Increasing Gasoline Prices in Iran

by Krystal

Following recent comments by Iranian President Massoud Pezeshkian in Parliament, worries have grown regarding a potential increase in gasoline prices and a reduction in gasoline quotas for next year.

During his speech on the budget bill, Pezeshkian highlighted the need to reform energy subsidies, including those for gasoline. He explained that the total cost of gasoline, not accounting for oil prices but including costs related to refining, transportation, and stations, is about 80,000 rials (approximately $0.117) per liter.

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Pezeshkian revealed that Iran spent around 900 trillion rials (about $1.323 billion) on gasoline imports this year. He projected that if the current trend continues, this figure could rise to 1,300 trillion rials (around $1.911 billion) next year. He noted that each liter of imported gasoline costs between 300,000 and 400,000 rials (approximately $0.44 to $0.58).

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He stressed the urgent need for subsidy reform, stating, “The current situation cannot continue.”

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The Iranian Retirees Council responded by expressing concern that the government might exploit the situation to harm the public’s livelihood. They emphasized that citizens are closely watching the government’s actions and urged officials to consider the implications for the future.

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In response to the rising concerns, Fatemeh Mohajerani, the government spokesperson, informed reporters on October 23 that the public should not be surprised by a gasoline price increase. She acknowledged that prices would rise but assured that the government would try to minimize the impact on the public.

Conversely, Ali Nikzad, Deputy Speaker of Parliament, commented on Pezeshkian’s statement about gasoline production costs. He stated that he had no information regarding a potential price increase for energy carriers, especially gasoline. He added that if the government plans to raise energy prices, it must coordinate with Parliament.

This discussion about rising gasoline and energy prices comes as economist and university professor Farshad Momeni voiced his frustration on October 19, questioning the need to test this policy again after it has been tried numerous times over the past 35 years. He noted, “It is shameful that the dollar-based purchasing power of wages has fallen by about 85% in just the past 15 years.”

The last significant rise in gasoline prices on November 15, 2019, triggered protests in at least 54 cities across Iran. The Iranian regime responded with a nationwide internet shutdown and a violent crackdown on demonstrators, resulting in the deaths of at least 1,500 protesters.

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