First Deputy of Pezeshkian Emphasizes 'Gasoline Changes', Minister of Economy Expresses Opposition; Gasoline Dizziness

Following the rising likelihood of an increase in gasoline prices in Iran, First Deputy Masoud Pezeshkian announced the necessity of a price increase considering social consequences, while the Minister of Economy opposed this plan on a television program due to its inflationary repercussions. On the other hand, the Minister of Oil of the Islamic Republic announced that the average gasoline imbalance is '6 million liters per day', but the Oil Distribution Company states that consumption has reached 140 million liters, and the imbalance has exceeded '20 million liters' in recent days. The gasoline controversy began again when Masoud Pezeshkian stated, 'It is illogical to import gasoline at free dollar rates and sell it to the people at subsidized prices while we do not have money to provide food and medicine.' Following these remarks and in response to widespread criticism, Mohammad Reza Aref, Pezeshkian's First Deputy, announced that the government 'will not make any hasty decisions' and 'will consider all social, cultural, and justice-related attachments in any decision.' After Aref's statements, the scope of criticism from experts and the public widened, leading to Abdolnaser Hemmati, the Minister of Economy of the Islamic Republic, expressing his opposition to the increase in gasoline prices on a television program. Hemmati deemed any changes in the gasoline sector to be inflationary and stated that 'the society cannot bear this pressure.' This senior government official emphasized, 'Unless you sell cars at international prices, why should gasoline be priced at international rates?' Meanwhile, there are contradictions in the area of imbalance, as the news website Khabar Online quoted Mohsen Paknejad, the Minister of Oil, stating that the average daily gasoline production in the country is 114 million liters and the average daily consumption is 120 million liters. This claim by the Minister of Oil indicates an average daily imbalance of 6 million liters between production and consumption of gasoline in the country, which needs to be addressed. However, according to the CEO of the Oil Products Distribution Company, gasoline consumption on Saturday, September 5, reached 140 million liters, and thus the imbalance has also exceeded 26 million liters per day. The increase in imbalance is a factor that has prompted the Islamic Republic to seek an increase in gasoline prices to manage its foreign currency resources and expenditures. Experts believe that if the current trend continues, gasoline imports this year could reach 10 billion dollars. This issue was emphasized by Pezeshkian in early August in an interview with the website of the Leader of the Islamic Republic, stating, 'We have an energy imbalance in the country, and currently, we are paying 8 billion dollars for gasoline purchases, meaning we buy gasoline for about 30 or 40 thousand tomans and sell it for 1500 tomans; how long can we continue this?' Media analysts believe that the government is attempting to normalize the issue of gasoline price increases and its surrounding discussions in public opinion to reduce much of the emotional reactions with protracted discussions. The Islamic Republic has a bitter memory of the last gasoline price increase, as protests erupted in November 2019 following a sudden rise in gasoline prices starting on the night of November 24 in several cities in Iran, including Mashhad, Ahvaz, Khorramshahr, and Behbahan. The protests spread to 54 cities, and ultimately, the Islamic Republic resorted to cutting off the internet in the country and killing protesters in various cities. On January 2, 2020, Reuters reported, citing sources within the Iranian government, that around 1500 protesters were killed during the suppression of the November protests. Dalga Khatinoglu: The Islamic Republic adds 25 million liters of harmful substances to domestic gasoline production. Widespread reactions to Pezeshkian's claim about gasoline prices: Is our income and expense ratio logical? Criticism from users regarding the increase in bread prices in Iran: Free market economy for gasoline and controlled prices for bread. Pezeshkian defended the increase in gasoline prices; users: A mission that Raisi did not dare to undertake was given to him. A record daily consumption of 140 million liters was registered, and the energy imbalance in Iran intensified.