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ranian President Masoud Pezeshkian said that it was “irrational” for the government to sell imported petrol at heavily subsidized rates while struggling to fund essential services. His comments come amid growing speculation about potential price hikes.
He said, “A government that lacks funds for essential items such as medicine, wheat, livestock feed, and retirees’ salaries cannot afford to purchase petrol at 50,000 tomans and sell it at just 10,000 tomans.”
“There is no rationality in the fact that we buy petrol with free market dollar prices and we sell it with a subsidized price,” he added.
Addressing the debate on whether to continue the fuel subsidy, he questioned, “Do economists and scientists support this policy?” Pezeshkian further emphasized that economists should protest these “wrong” policies.
During the election campaigns, Pezeshkian had repeatedly assured that no decisions regarding petrol prices would be made without public consent, and he had dismissed media reports suggesting an imminent price hike.
However, many domestic media outlets have recently expressed support for the government’s stance.
In a report on Wednesday, the Etemad newspaper criticized the low petrol prices, labeling them as a primary cause of smuggling. The report also suggested that these low prices encourage the growth of “fake jobs.”
The economic daily Donya-e-Eqtesad highlighted the doubling of the country’s fuel consumption over the past three years and interpreted the President’s remarks about the “irrational” trend in fuel consumption as a signal that the government may soon make changes to this policy.
Government-affiliated newspapers have also backed the State’s stance. The Iran newspaper, in its Wednesday issue, said, “The correction of petrol prices will happen with input from experts and the support of the public.”
However, critics argue that instead of increasing petrol prices, which would place additional economic pressure on wage earners, including workers, the government should focus on eliminating unnecessary expenditures.
For years, petrol shortages have been a significant challenge for Iranian governments, with fuel price rises being a contentious issue for the former Ebrahim Raisi administration. Although the previous administration did not raise fuel prices, it sought to reduce petrol subsidies by limiting fuel card quotas and restricting the use of station cards.
IRAN WIRE