Mohammad Reza Aref, the Vice President of Iran’s regime, referring to the dire economic conditions and budget deficit, announced a deficit of one quadrillion rials (about $17 billion) in the first six months of the Persian calendar year (from March 21 to September 21). He added that last year, “Our trade balance was negative by $17 billion.”
On Saturday, September 14, Aref, during a conference of university presidents, stated, “We are facing imbalances in various sectors, and this is a very serious issue.”
According to some experts and critics, Aref’s remarks align with the “economic reforms and surgery” that the regime has tasked its president Masoud Pezeshkian with implementing.
The one quadrillion rial ($17 billion) deficit and imbalance mentioned by Aref is a warning for people’s livelihoods. Analysts believe the government will respond by raising prices, reducing subsidized fuel quotas, and increasing the cost of other energy carriers to compensate for the shortfall.
In recent months, the regime has increased bread prices in various provinces, with hikes starting at 25% in most provinces and ultimately reaching 66% in Tehran.
Regarding gasoline, in recent months, Masoud Pezeshkian and his cabinet have repeatedly stressed the need for price reforms. Critics believe that Iranian media, regardless of political alignment, have been tasked with preparing the public sentiment for these changes.
An increase in water and electricity prices is another step that experts believe the government will take next. While the Ministry of Energy has remained silent on the matter, the head of Tavanir (the national electricity company) stated, “We will not increase electricity prices for now or this year.” However, indirect increases have been applied through consumption coefficient tables in household and industrial electricity bills.
