Government's Move to Increase Gasoline Prices; Economic Minister's Advisor: Let's Talk to the People Before Raising Prices

The advisor to the Minister of Economy deemed the increase in gasoline prices in Iran inevitable, stating that the government should first communicate with the people through authorities, scholars, and experts before raising prices. According to the Telegram channel 'Economic Ninety', Kamal Qaidarloo described the situation of gasoline production and consumption as critical, asserting that people should be informed that keeping gasoline prices low is wasteful, unjust, and foolish, and that prices should be raised by creating common interests. This advisor to the Minister of Economy, without elaborating on what he termed 'common interests', added that a Baluch citizen who is shot by security and border forces while transporting fuel does not benefit from cheap gasoline as much as a person living in Tehran with two cars. These remarks come after the Deputy of Industries and Energy of the Fuel and Transport Management Headquarters announced in an interview with the 'Ham Mihan' newspaper on Tuesday, March 15, that the government plans to eliminate state gasoline quotas and increase the price to 3,000 tomans in the final step. Kazem Azizi emphasized that if the government seeks to control consumption, this can only happen by increasing the price from 1,500 tomans to 15,000 tomans. Hamid Ahmadinia stated that fuel smuggling is an old excuse for the Islamic Republic to raise gasoline prices. The 'Ham Mihan' newspaper also referred to sanctions and currency issues, quoting Kazem Azizi who stated that 'the situation is critical.' Alongside these statements, media and experts close to the government are continuously discussing the imbalance in gasoline and the budget needed for imports to prepare public opinion for changes in gasoline pricing. In this context, Hashem Oraki, head of the Scientific Energy Associations Union, reported on March 6 about the $4 billion import of gasoline and diesel, mentioning that Ali Khamenei, the leader of the Islamic Republic, expressed dissatisfaction about why gasoline imports are necessary. The ILNA news agency also reported in February based on its journalist's sources in the parliament corridors that the government plans to move towards a three-tier pricing system for gasoline starting next spring by reducing the free gasoline quota or the 3,000 toman gasoline. Over the past year, Voice of America has repeatedly reported on fundamental changes in the gasoline sector, citing statements from Islamic Republic officials and media emphasis in Iran on the necessity of consumption management and comparing consumption in Iran with other countries. Ahmad Vahidi, the Minister of Interior, stated on December 15, 'One liter of our gasoline is cheaper than one liter of water.' He also emphasized that 'the cheap price of gasoline automatically increases gasoline consumption.' Voice of America reported that the legal requirement and authorization in the 'Seventh Development Plan' and the budget for 1403, along with the statements of Islamic Republic officials, 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 intensified 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 resorted to suppressing the demonstrators. In this context, Reuters reported on December 23, 2019, that about 1,500 people were killed in the protests and quoted three sources close to the leader of the Islamic Republic stating that Khamenei had instructed government and security officials to 'do whatever is necessary' to stop the protests.