Farhad Shahraki, the first deputy chairman of the Energy Committee in Iran’s regime Majlis (parliament), said in an interview with domestic media that the budget allocated for gasoline imports this year has been depleted in the first few months, and the government no longer has foreign currency to buy gasoline. He made the remarks while referring to the possibility of changing the price of gasoline purchased with the “free fuel card” at gas stations.
On Saturday, November 8, Shahraki told a reporter from the state-run Young Journalists Club that this situation has prompted the government to consider increasing gasoline prices.
He added that the government is unaware of the issue, saying, “So far, this matter has not been raised in the Majlis, and even the Energy Committee has not been consulted.”
The member of the Energy Committee referred to ongoing debates and speculations in recent weeks about a possible fuel price increase, saying, “It is possible that the free fuel card at gas stations will undergo a price change, in order to encourage fuel savings.”
Shahraki, however, emphasized, “The government does not need Majlis’ approval to increase gasoline prices.”
Nevertheless, Fatemeh Mohajerani, spokesperson for the government, announced on Tuesday, November 4, that the government has not yet made any decision to raise the price of rationed gasoline, which will continue to be sold at current rates.
This comes while Iran’s regime president, Masoud Pezeshkian, stated on October 23 that there is “no doubt” about the need to increase gasoline prices.
Reports about Pezeshkian’s government planning to raise fuel prices have been circulating for weeks.
Hossein Samsami, a member of the Economic Committee of the regime’s Majlis, confirmed on Friday, November 7, that a “three-tier fuel pricing system” had been approved in the meeting of the heads of the three branches of power.
According to him, under the new plan, gasoline will be sold at three different prices: the first 60 liters at 15,000 rials per liter, the next 100 liters at 30,000 rials per liter, and the remainder up to 160 liters at 50,000 rials per liter. Currently, one U.S. dollar is worth about 1.1 million rials, and a worker’s monthly wage is roughly 130 dollars.
Warning about the consequences of rising gasoline prices
On Wednesday, November 5, regime MP Ebrahim Rezaei warned about the rise in gasoline prices, saying that there are “rumors about an upcoming price hike,” the “method of implementation” of which could be “very dangerous.”
Rezaei added, “Given the importance of this matter for the country, care must be taken to ensure that some of the past tragedies are not repeated.”
The last gasoline price increase in Iran in November 2019 triggered a wave of widespread nationwide protests that were brutally crushed by the Iranian regime’s security forces.
According to reports, at least 1,500 people were killed and thousands more were arrested during those protests.
Pezeshkian’s government fabricates figures to justify the fuel price hike
According to government officials, raising prices is “inevitable” due to what they describe as the “high cost of gasoline production.”
Mohammad Jafar Ghaempanah, executive deputy to Masoud Pezeshkian, the Iranian regime’s president, said on November 5, “Each liter of gasoline costs the government 340,000 rials, but we sell it for 15,000 or 30,000 rials.”
However, studies show that the government’s actual production cost is about 90% lower than the stated figure. It is clear that Iran’s regime is trying to use every possible tactic to cover its budget deficit while continuing to spend oil revenues on funding its regional proxy groups and suppressing its own people.
