The Seventh Development Plan bill has been sent to the Guardian Council for approval, and one of the key points of this bill is the gradual increase in diesel prices starting from 2025. Analysts believe this is a precursor to raising energy carrier prices to global levels in Iran. According to a report by Tasnim, 'from the second year of the plan, that is, 2025, subsidized diesel will be distributed solely based on mileage and online bill of lading, and any excess will be subject to incremental consumption taxes.' If approved by the Guardian Council, this will become law and will be implemented. It is predicted that the price of diesel, if this law is enacted, will rise to over 1,000 tomans per liter. Currently, the subsidized price of diesel is 300 tomans per liter and the free price is 600 tomans. The price of gasoline is also a matter that government officials and parliament members, with the help of media and experts close to the regime, are trying to align public opinion for its increase. It seems that the first step towards raising gasoline prices is to change the monthly quota and reduce it so that free gasoline faces increased demand. Independent experts believe that a 3,000 toman increase in the price of free gasoline will also be one of the government's corrective actions, and the discussions about the necessity of economic surgery regarding gasoline are in this context. In this regard, Mohsen Zangeneh, spokesperson for the integration of the Seventh Development Plan, stated: 'In the Seventh Plan, we approved that the subsidized price of gasoline should not change, but how much subsidized quota is provided to the people is up to the government.' Many believe this action paves the way for price increases. Any change in gasoline prices will directly and indirectly affect the prices of all goods and services. Concerns about this impact become more serious when information released by news sources indicates that the government has no specific plan to support the underprivileged and workers, and ultimately, a 20% increase in the minimum wage is expected. It is noteworthy that this government decision comes at a time when the poverty line in the country has exceeded 20 million tomans and inflation remains above 40 percent. Continued groundwork for increasing gasoline prices; a parliament representative: people will endure the pain of economic surgery. Officials of the Islamic Republic have declared a 'critical situation' for gasoline and diesel. Media murmurs about increasing gasoline prices; producing gasoline domestically is not cost-effective.
Seventh Development Plan; Diesel Prices to Increase Gradually from 2025
The Iranian government plans to gradually increase diesel prices starting in 2025 as part of the Seventh Development Plan, which may lead to higher energy prices overall. This move is seen as a precursor to aligning domestic prices with global standards, raising concerns about inflation and the lack of support for low-income citizens. The situation is critical as the poverty line rises and inflation remains high.
👥 Key Players
📰 What Happened
The Iranian government has proposed a gradual increase in diesel prices starting in 2025 as part of the Seventh Development Plan, which may lead to higher energy prices overall. This move is seen as a step towards aligning domestic fuel prices with global standards.
- Current subsidized diesel price is 300 tomans per liter, expected to rise to over 1,000 tomans.
- Concerns are growing about inflation and the lack of support for low-income citizens amid rising poverty levels.
💡 Why It Matters
📚 Background
Iran has been grappling with high inflation and poverty, leading to calls for economic reforms. The government seeks to align domestic fuel prices with global standards to improve economic viability.
🏷️ Entities Mentioned
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