A Newspaper's Report on the Government's 'Gasoline Dream' for the People; The Removal of Government Gasoline Subsidies is 'Inevitable'

In an interview with the newspaper 'Ham Mihan' published on Tuesday, March 6, the Deputy of Industries and Energy at the National Fuel Management Headquarters announced the government's plans for gasoline, including the removal of government gasoline subsidies and an increase in its price to 3,000 tomans in the final phase. Kazem Azizi emphasized that the government 'does not intend to raise gasoline prices,' but immediately added that 'if the government subsidy is removed, price changes will occur, and consumers will have to meet their entire fuel needs at the rate of 3,000 tomans.' According to this official, 'the formula for fuel subsidies in the smart system is under review, and no final decision has been made yet.' However, with the reduction of free card quotas and limiting cards at fuel stations, it seems that the removal of government subsidies is the next step for the government. The interview also explained that alongside the uncertain subsidy changes, two other non-price programs for controlling fuel consumption will be implemented, and the Deputy of Industries and Energy stated that given the government's policy of not changing gasoline prices, consumption control is an unavoidable necessity. He mentioned that non-price solutions are being implemented by the smart fuel system of the National Oil Products Distribution Company, one of which has been the adjustment of the second card quotas. Kazem Azizi stressed that the main issue is that the government is facing serious challenges in securing gasoline. The 'Ham Mihan' newspaper emphasized that there is no alternative but to import gasoline to meet consumption; gasoline that costs the government 60,000 tomans per liter but is sold to consumers for 3,000 tomans. 'Ham Mihan' also referred to sanctions and currency problems, quoting Kazem Azizi as saying that 'the situation is critical.' Accordingly, it has been concluded that this critical situation gradually prepares the grounds for changing government fuel subsidies and makes their removal likely for the next year. In the past year, Voice of America has reported several times based on the statements of Islamic Republic officials and emphasized the necessity of consumption management, comparing consumption in Iran with other countries, indicating fundamental changes in the gasoline sector. Ahmad Vahidi, the Minister of Interior, stated on December 6, 'One liter of our gasoline is cheaper than one liter of water.' He emphasized that 'the low price of gasoline automatically increases gasoline consumption.' Voice of America also reported that the legal requirement and authorization in the 'Seventh Development Plan' and the budget for 1403, along with officials' statements, indicate a significant event in the gasoline sector. Regarding officials' and some parliament members' references to the necessity of economic surgery, several experts have stated that any manipulation of gasoline prices will lead to increased economic pressures and disrupt political and social relations in Iran. The increase in gasoline prices during Hassan Rouhani's presidency in November 2019 led to widespread protests in Iran. In response to these widespread protests, the Islamic Republic suppressed the protesters. In this regard, Reuters reported on December 23, 2019, that about 1,500 people were killed in the protests and quoted three sources close to the Supreme Leader of the Islamic Republic as saying that Khamenei had instructed government and security officials to 'do whatever it takes' to stop the protests.