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Sharp criticism after the lifting of government subsidies for fuel in Iran
27-05-2015 12:15 PM
Decision to raise fuel prices in Iran sharp criticism among citizens who emphasized the disappointment of the action taken at a time when hopes for a positive outcome to the nuclear agreement to improve their standard of living, but analysts stressed that the resolution would contribute to the reduction of public deficit and ease the financial crisis faced by the country due to Western sanctions.
The Iranian Government has said raising the total support from gasoline, effective midnight Tuesday, raising its price by about 40 percent, to about $ 32 billion a year earmarked for fuel subsidies. This will bring the price of a litre of regular gasoline to 10,000 rials (34 cents) instead of 7,000 rials (24 cents), and diesel price will reach 3,000 riyals (9 cents) per liter, an increase of 2,500 rials (eight cents).
The decision comes within the plan of lifting subsidies on fuel and that the previously agreed Consultative Council on the implementation in September of 2010, the Government of the former Iranian President Mahmoud Ahmadinejad, then a proposal to gradually eliminate subsidies of strategic goods to save the country's budget at a time when the economy have badly eroded under intense Western sanctions over its nuclear program.
It was the Iranian street fear the negative consequences of the decision, but without protests or mass protests until yesterday, in a vegetable shop to honor the Lady says it fears the situation is back to what it was before President Hassan Rowhani to power, as the country suffered from severe negative consequences of economic sanctions, adding that it was better to postpone the application of the Government's decision to lift subsidies on gasoline until the nuclear negotiations and see the result.
Meanwhile, student Amir Hussain says that the Iranian Government could help cover the budget deficit, but considered that the Government should regulate the market traders, preventing them from monopoly or lift to prices.
The decision was accompanied by increased prices of gasoline 40% announced another Director of national gas company Hamid Reza Iraqis, who told Mehr News Agency that gas prices for households will rise at a rate of 15%.
Professor of Economics at the University of Tehran, Mohammad khosh their disapproval, that set the price of gasoline instead of using some citizens of fuel card at a lower price, there will be significant adverse consequences in his opinion, the reason is that the Iranians used to transport 70 million liters of gasoline a day, and four-fifths of this quantity free is not supported.
But other economists say a more realistic consequences, causing a lifting of government subsidies which have been applied in two phases since the era of Ahmadinejad in the crises of life for citizens.
Experts predict a rise in consumer prices, and public transportation in the coming period.
Dealers said the low purchasing power of the Iranian citizen during the coming months, what means recession in the market, said one of the owners of grocery stores in the capital of Tehran, Mr. Brahimi, commodity prices started to rise, and this because of the transported goods shops have started to raise their wages by 10 to 15 percent, particularly with the approach of the holy month of Ramadan.
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27-05-2015 12:15 PM
Decision to raise fuel prices in Iran sharp criticism among citizens who emphasized the disappointment of the action taken at a time when hopes for a positive outcome to the nuclear agreement to improve their standard of living, but analysts stressed that the resolution would contribute to the reduction of public deficit and ease the financial crisis faced by the country due to Western sanctions.
The Iranian Government has said raising the total support from gasoline, effective midnight Tuesday, raising its price by about 40 percent, to about $ 32 billion a year earmarked for fuel subsidies. This will bring the price of a litre of regular gasoline to 10,000 rials (34 cents) instead of 7,000 rials (24 cents), and diesel price will reach 3,000 riyals (9 cents) per liter, an increase of 2,500 rials (eight cents).
The decision comes within the plan of lifting subsidies on fuel and that the previously agreed Consultative Council on the implementation in September of 2010, the Government of the former Iranian President Mahmoud Ahmadinejad, then a proposal to gradually eliminate subsidies of strategic goods to save the country's budget at a time when the economy have badly eroded under intense Western sanctions over its nuclear program.
It was the Iranian street fear the negative consequences of the decision, but without protests or mass protests until yesterday, in a vegetable shop to honor the Lady says it fears the situation is back to what it was before President Hassan Rowhani to power, as the country suffered from severe negative consequences of economic sanctions, adding that it was better to postpone the application of the Government's decision to lift subsidies on gasoline until the nuclear negotiations and see the result.
Meanwhile, student Amir Hussain says that the Iranian Government could help cover the budget deficit, but considered that the Government should regulate the market traders, preventing them from monopoly or lift to prices.
The decision was accompanied by increased prices of gasoline 40% announced another Director of national gas company Hamid Reza Iraqis, who told Mehr News Agency that gas prices for households will rise at a rate of 15%.
Professor of Economics at the University of Tehran, Mohammad khosh their disapproval, that set the price of gasoline instead of using some citizens of fuel card at a lower price, there will be significant adverse consequences in his opinion, the reason is that the Iranians used to transport 70 million liters of gasoline a day, and four-fifths of this quantity free is not supported.
But other economists say a more realistic consequences, causing a lifting of government subsidies which have been applied in two phases since the era of Ahmadinejad in the crises of life for citizens.
Experts predict a rise in consumer prices, and public transportation in the coming period.
Dealers said the low purchasing power of the Iranian citizen during the coming months, what means recession in the market, said one of the owners of grocery stores in the capital of Tehran, Mr. Brahimi, commodity prices started to rise, and this because of the transported goods shops have started to raise their wages by 10 to 15 percent, particularly with the approach of the holy month of Ramadan.
[You must be registered and logged in to see this link.]
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