Gas prices soar in Iran
as subsidy is reduced.
by New York Times:
After midnight on Sunday, the price of subsidized gasoline jumped to about $1.44 a gallon from about 38 cents a gallon. Similar increases went into effect for compressed natural gas and diesel fuel, with subsidy reductions for other commodities expected to be phased in gradually.
The reduction in subsidies comes as Iran’s economy is starting to show signs of strain caused by international sanctions. Economic restrictions imposed by the United Nations Security Council and further measures added by Western countries mainly to press Iran on its nuclear program have made it increasingly difficult for the oil-exporting country to conduct international business.
The government tried to cushion the blow by making a one-time payment to each household of about $77. Although the funds were deposited in October, Iranians were not allowed to withdraw the money until Sunday, the day the reductions took effect.
The gasoline price increase was expected to be the most wrenching of the changes because of the country’s heavy reliance on private vehicles. Iran’s long-distance bus and taxi drivers’ guild predicted that fares could increase by as much as 125 percent.
The new price of about $1.44 a gallon applies to the monthly ration of about 16 gallons per personal car. Gasoline bought over and above the monthly ration will increase to about $2.64 a gallon.
Looks like the Obama administration’s enforcement of sanctions on Iran seem to be paying off. Iran’s economy is going broke and Obama may be loving it. But not as much as Israel/Saudi Arabia is