Following remarks by Iranian regime president Massoud Pezeshkian in Parliament about the necessity of what he called the “reform of energy subsidies, including gasoline,” concerns about a possible increase in gasoline prices next year and a reduction in gasoline quotas have intensified.
These statements were made as Massoud Pezeshkian, in his speech while submitting the budget bill to Parliament, mentioned that the total cost of gasoline, excluding oil prices but including refinery, transportation, and station costs, amounts to approximately 80,000 rials (around $0.117).
He emphasized that this year approximately 900 trillion rials (around $1.323 billion) were spent on gasoline imports, and if the current situation continues, 1,300 trillion rials (around $1.911 billion) will be needed next year. Each liter of imported gasoline costs between 300,000 and 400,000 rials (around $0.44 to $0.58).
Pezeshkian, citing these figures, stated the “necessity of reforming energy subsidies” and said that the current situation cannot continue.
The Iranian Retirees Council, stating that “everything is ready for an attack on public life,” wrote: “The misuse of the current situation and political excuses directly target the people’s livelihood. However, the people are closely monitoring all the actions of the government. Think about the days ahead.”
Meanwhile, concerns and reactions to Massoud Pezeshkian’s statements led Fatemeh Mohajerani, his government’s spokesperson, to tell reporters on Wednesday, October 23, that “the people will not be surprised by an increase in gasoline prices.”
However, this government official confirmed in her remarks that gasoline prices would rise and added: “All efforts are being made to ensure that, despite the pressures on the government, the least possible burden is placed on the people.”
On the other hand, Ali Nikzad, Deputy Speaker of Parliament, regarding the 80,000-rial gasoline production cost mentioned by the President in Parliament, said: “I have no information about a potential increase in energy carrier prices, particularly gasoline, next year. However, if the government intends to raise energy prices, it must certainly coordinate with Parliament.”
The discussion of increasing gasoline and other energy prices comes as Farshad Momeni, an economist and university professor, said on October 19: “Hasn’t testing this policy a hundred times over the past 35 years been enough? Do we need to test it again?” He added: “It is shameful that the dollar-based purchasing power of wages has fallen by about 85% in just the past 15 years.”
The sudden rise in gasoline prices on November 15, 2019, led to protests in at least 54 cities in Iran. Eventually, the Iranian regime responded by cutting off internet access nationwide and violently suppressing protesters in various cities.
During the crackdown on the November 2019 protests, at least 1,500 protesters were killed.
