Emphasis by Deputy Executive of Pezeshkian on Increasing Gasoline Prices; 'It's Cheaper than Drinking Water'

The executive deputy of Masoud Pezeshkian, the President of Iran, states that the price of gasoline in the country is 'cheaper than drinking water' and this trend 'cannot continue.' Mohammad Javad Ghaempanah said on Tuesday evening, November 29, that the government pays 'high amounts' for gasoline subsidies, in an interview with the Islamic Republic News Network, stating: 'We have $4 billion in gasoline imports that we buy at high prices and sell at low prices.' However, Ghaempanah continued that they do not want to make a decision or announce an increase in gasoline prices at this time. The executive deputy of the Iranian president avoided answering whether the Pezeshkian government has plans to raise gasoline prices. The Iranian government has liberalized the import and distribution of super gasoline at the FOB price of the Persian Gulf. Meanwhile, some members of the Islamic Consultative Assembly had previously reported an increase in gasoline prices in the next year's budget. Hossein Samasami, a member of the Economic Commission of the Assembly, stated that considering more than 20 trillion tomans allocated for revenue from gasoline sales in the budget bill, it seems we will witness a '40 percent' increase in the price of this petroleum product. According to Mehrdad Lahouti, the deputy head of the Program and Budget Commission, 'with changes in the budget numbers, it is clear that the government is likely to increase gasoline prices next year.' Masoud Pezeshkian, the President of Iran, also stated in defense of the budget bill in the Assembly that the cost of gasoline is 8,000 tomans, a point that implicitly indicates his desire to raise gasoline prices. The President of Iran, in another part of his speech on the first day of Aban, said he believes 'reform in the currency system and fuel subsidies is essential' and emphasized that 'another existing challenge is the reform of energy subsidies.' Currently, the price of regular subsidized gasoline is 1,500 tomans per liter, non-subsidized regular gasoline is 3,000 tomans, and super gasoline is 3,500 tomans. The possibility of an increase in gasoline prices by the Pezeshkian government arises while five years ago, protests against the increase in gasoline prices in Iran in Aban 1398 led to the deaths of many protesters. These widespread public protests, which occurred in a significant number of cities in Iran, were initially a reaction to the sudden rise in gasoline prices but quickly shifted to target the very foundation of the Islamic Republic. The severe governmental crackdown and the risk of protests going 'underground' are evident.