Continued Preparations for Gasoline Price Increase; MP: People Endure Economic Surgery Pain

Government officials continue to discuss the low price of gasoline; a topic that has been described on social media and by some media outlets and economic experts as groundwork for an increase in the price of this fuel. In this context, Ahmad Alireza Beigi, a member of the Islamic Consultative Assembly, stated on Thursday, December 6, that the main cause of air pollution is the "imbalance of gasoline and its low price." He criticized what he called the "inability of the Environmental Protection Organization to implement the Clean Air Law," stating, "Surgery also involves bleeding, pain, and reaction" and claimed that "people must endure pain to achieve comfort and healing." Alireza Beigi argued that the source of air pollution is the energy sector imbalance, noting that the low price of gasoline at 3,000 tomans is one of the problems that necessitates "surgery." Meanwhile, the Tasnim news agency reported on Friday, December 8, that according to the seventh development plan bill submitted for final approval to the Guardian Council, from the second year of this plan, i.e., in 1404, subsidized diesel will be distributed solely based on mileage and online freight bills, and any excess will be subject to gradually increasing consumption taxes. Currently, the price of subsidized diesel is 300 tomans per liter, while the free price is 600 tomans. Additionally, according to the Tabnak website, Ebrahim Raisi, the President of the Islamic Republic of Iran, reduced the issue of gasoline subsidies to the late-night drives of affluent individuals during a speech at Beheshti University in Tehran. Tabnak reported that these remarks "raise suspicions of groundwork for a fuel price increase." The website added, "It is clear that a person who owns a luxury car or house has enough financial capability to pay for any increase in fuel or energy prices, and as previous price increases have shown, the consumption behavior of the wealthy, who generate significant wealth, does not change." Tabnak further noted, "Increasing fuel prices only affects the middle and lower classes and has inflationary effects on consumer goods prices." Ahmad Vahidi, the Minister of Interior, stated on Wednesday, December 6, "One liter of our gasoline is cheaper than one liter of water" and added, "The low price of gasoline inherently increases gasoline consumption." Before that, Ramadan Ali Samgadvani, a member of the Board of Directors of the Joint Commission of the Seventh Development Plan in the Parliament, said last week that the government might propose an increase in energy carrier prices in the 1403 budget bill. 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 increased 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 took action to suppress the demonstrators. In this regard, Reuters reported on December 23, 2019, that approximately 1,500 people were killed in the protests and quoted three sources close to the Supreme Leader of the Islamic Republic, stating that Khamenei had instructed government and security officials to do "whatever it takes" to stop the protests.