Pezeshkian Defended the Increase in Gas Prices; Users: A Mission That Raisi Did Not Dare to Undertake Was Given to Him

Masoud Pezeshkian, the head of the fourteenth government, who had denied the increase in gas prices before the presidential elections in Iran, criticized the 'gasoline subsidy' on Tuesday, September 6, stating: 'There is no logic in buying gasoline at free dollar rates and selling it to the people with subsidies.' He questioned whether this subsidy should be given, adding: 'Do economists accept this? Economists should protest against these wrong policies.' On July 2, Pezeshkian had said: 'I have been broadcasted in the media that we are raising gasoline prices, while this is not the case. I will not take any action without the people's consent, and I declare this firmly.' In his remarks on Tuesday, he also stated: 'When we do not have money for wheat, inputs, and pension payments, we buy gasoline at 50 tomans per dollar and sell it at 10 tomans. No concerned human being would accept such a policy.' These statements, which received support from the supporters of the fourteenth government on social media, faced criticism from many users. Critics pointed to the massive financial support of the Islamic Republic to its proxy groups in the Middle East, the exemption of institutions affiliated with the Supreme Leader from paying taxes, and widespread corruption in the government, demanding that instead of increasing gasoline prices—which would impose significant economic pressure on wage earners, including workers—the government should not take actions detrimental to them. Currently, the minimum wage for workers subject to labor law, married with children, is about 11 million tomans, but according to some independent workers' and retirees' organizations in Iran, as well as some official trade unions, the monthly cost of living in cities exceeds 30 million tomans. Siamak Farid, a political activist, wrote on the social media platform 'X': 'Pezeshkian has begun to whisper about raising gasoline prices, something that Raisi did not dare to do. The increase in gasoline prices affects the prices of everything, and when salaries are in rials and the prices of goods are in dollars, people are practically in a deadlock...' Azam Bahrami, a researcher and women's and environmental rights activist, also wrote: 'An important point in Pezeshkian's speech is that no economist or scientists will tell you that the one who should pay for your gasoline rate is the same person who has to buy wheat, medicine, and other essential items! How can the retiree whose salary you have not paid afford to pay for gasoline at such a price?' Khosrow Sadeghi-Boroujeni, a journalist and economic researcher, also wrote: 'They think gasoline is a liquid that is only poured into the tank of a personal car, not a benchmark commodity whose price increase means general inflation.' Additionally, Ehsan Badaghi, a journalist, wrote that 'the government should also bring the purchasing power of society to that level' and 'the import and price of cars in the country should be liberalized.' According to him, 'other than this, supplying gasoline at free prices is robbing the people.' The Telegram channel 'Civil Market Protest' also quoted a user as saying: 'I am willing to have my salary calculated in dollars and for foreign cars to be imported at the prices of neighboring countries. Now you can increase gasoline prices in dollars.' The price of gasoline directly affects the prices of all goods and services. Vahid Shaghaghi-Shahri, an economist, emphasized in an interview with the 'Jamaran' website on Tuesday that 'any economic surgery requires timing, situational awareness, and an assessment of its requirements.' He added: 'Currently, after seven consecutive years of imposing over 40% inflation on the people, especially the middle to lower classes, and the sharp decline in people's purchasing power, on the other hand, due to the lack of productive economic growth, a large portion of people earn income in low-end jobs such as driving for Snapp; under no circumstances should economic surgery be undertaken in this economic situation.' Shaghaghi-Shahri noted: 'Economic issues are never one-dimensional, and simplifying complex economic issues does not provide solutions for the country's problems and increases concerns and worries in society.' He added that key variables such as 'the price of gasoline in the world and neighbors and the difference with domestic prices,' 'the quality of domestic cars and their fuel consumption,' 'the wages paid to people,' 'the high employment rate affected by gasoline prices in recent years, such as those working in Snapp,' 'the share of households owning cars and their gasoline consumption,' 'the severe weakening of Iranians' purchasing power,' and 'the equitable distribution of energy subsidies' should be considered. According to this economist, 'without considering these variables, the solution of increasing gasoline prices will not yield results, and in addition to increasing concerns in society, it will not have scientific defensibility.' Shaghaghi-Shahri added: 'The wages paid in Iran compared to neighboring countries are very insignificant. The quality of domestically produced cars is low and fuel-consuming. About 50% of Iranian households do not own cars, and some Iranian households have several cars depending on family size. In addition, heavy tariff and non-tariff barriers have been imposed on car imports, making it difficult to access low-consumption foreign cars easily.' Mohammad Machinchi, an economist, stated that 'the increase in gasoline prices will be like a 7.0 magnitude earthquake in the lives of the people of 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 as saying that Khamenei had instructed government and security officials to do 'whatever is necessary' to stop the protests. Vahid Shaghaghi-Shahri emphasized in another part of this interview that 'the equitable distribution of hidden energy subsidies should be on the government's agenda' and added: 'The country should prioritize normalizing its relations globally and regionally and avoid any escalation. The Iranian economy must join the global value chain and trade and exit from commercial and economic isolation. Economic governance should be based on principles and components of competitiveness, market economy, non-directive policies, development of the private and cooperative sectors, and elimination of monopolies and rent-seeking and predatory economies.' Meanwhile, Hamidreza Salehi, a member of the Energy Commission of the Chamber of Commerce, stated in an interview with 'Ninety Economic' that 'we cannot keep prices unchanged forever,' adding: 'We must skillfully realize price adjustments.' Previously, Hoshmatollah Falahatpisheh, a former member of the Islamic Consultative Assembly, had said on August 8 to the 'Shargh' newspaper: 'Mr. Pezeshkian should know that any increase in prices and taxes, especially the increase in the price of a commodity like gasoline, is a melon peel under his feet.' He pointed out: 'Instead of increasing prices, the budget should be organized. By doing this, a wealth will be created to the extent that Pezeshkian's government can be the first government that does not increase the economic pressure on the people but rather reduces it.' This former parliament member called for 'the elimination of elitism from the national budget.'