While government-affiliated media claim that the long lines for gasoline in the capital have "dissipated," a member of parliament warned President Raisi's government that they do not have the courage to announce a gasoline price increase. On Friday, the Tasnim news agency reported, based on its field reports, that the situation at fuel stations in Tehran had normalized during the late hours of Thursday. Over the past week, reports of a potential increase in gasoline prices in Iran had led to long lines at gas stations. Some government sources attributed this issue to "belief in rumors of shortages or price increases, malfunctioning fuel dispensers, and high gasoline demand for urban and intercity summer travel." However, some in parliament are confident that President Ebrahim Raisi's government has no choice but to increase gasoline prices. Mustafa Mir-Salim, a member of parliament, stated that the government should explicitly remind the people that the price of fuel and energy has decreased to one-tenth due to the collapse of the national currency since the beginning of the eleventh government, and that this national asset is being plundered and turned into smoke, with its pollution affecting everyone. He added that if the government lacks the courage to make reforms, it should at least ask the people not to waste fuel. Previously, Hamid Reza Salehi, a member of the Tehran Chamber of Commerce, had told Iran Watch that gasoline prices might increase. He referred to previous similar cases and said that since 2013, gasoline prices should have been raised annually in line with inflation, but governments have avoided doing so in a populist environment. Ultimately, in 2019, while gasoline consumption increased, production was insufficient, and government revenues had decreased, leading to a threefold increase in gasoline prices to compensate for the budget. This action caused social harm and a poor situation in society. This year, a similar situation may occur. Last year's protests have raised concerns among Iranian officials regarding a gasoline price increase, especially since the 2019 increase led to nationwide protests in Iran. Gasoline consumption in Iran exceeds domestic production, forcing the government to rely on imports. This year, it has been repeatedly announced that daily shortages of 10 to 15 million liters must be compensated through imports. Government officials, including Javad Owji, the Minister of Oil, consider the gasoline shortage to be a rumor. Nevertheless, gas stations have imposed refueling restrictions, allowing refueling only after 40 liters for several hours. Some have predicted that the price of free gasoline could reach 15,000 to 25,000 tomans per liter. Ahmad Alavi stated that the government is trying to prevent public protests by gradually increasing the prices of bread and gasoline. The fuel crisis in Iran has been exacerbated by the cessation of imports from Russia and the return of low-quality gasoline exports from Afghanistan. Reports from citizens describe the chaotic situation at gas stations in Rasht County. A surprise visit by the Deputy Minister with the presence of state media reporters at a gas station raised questions about whether it was crowded. Long lines and concerns about rising gasoline prices were discussed with Reza Ghaibi. Public reports indicate the "chaotic situation" at gas stations, with the Minister of Oil stating that consumption is high. A member of the Iranian Chamber of Commerce confirmed the possibility of a gasoline price increase, urging readiness for tough days ahead.
Mir-Salim's Warning to Raisi's Government: You Don't Have the Courage to Announce Gasoline Price Increases
A member of Iran's parliament, Mustafa Mir-Salim, warned the Raisi government about the potential for gasoline price increases, citing public unrest and economic pressures. The government faces challenges with rising gasoline demand and insufficient domestic production, leading to fears of social unrest similar to the protests in 2019. This situation highlights the ongoing economic struggles in Iran amid currency devaluation and inflation.
👥 Key Players
📰 What Happened
Iran is facing potential gasoline price increases due to economic pressures and insufficient domestic production. This has led to public concern and long lines at gas stations, with government officials warning of possible unrest.
- Reports of potential gasoline price hikes have caused long lines at gas stations.
- Iran's gasoline consumption exceeds its production, necessitating imports.
💡 Why It Matters
📚 Background
Iran's economy is under pressure from sanctions, inflation, and currency devaluation, making fuel pricing a sensitive issue.
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