Following an overnight 40% hike in gasoline prices, Iranian people also faced a 35% increase in gas prices in just four months.
A senior Iranian legislator stated that with such price hikes, Iran’s agriculture will be closed down. The subsidy on fuel price for farmers has been cut off which shall leave its adverse effect on the agricultural section. The Iranian agriculture is already in trouble due to low farm product prices.
The state-run ISNA News Agency reported on May 26 that Hamidreza Eraqi, deputy Minister and CEO of Iran’s National Gas Company, has said: “The price of gas in the governmental, household and business sections will increase 15% in each cubic meter and the new prices will take effect on Wednesday.”
He stated that the 20% increase in prices a few months ago was last year’s and it should not be added up to this recent 15% price hike.
Iran has the highest known natural gas reserves in the world. At least 18% of global natural gas reserves is in Iran.
The Iranian regime, hard pressed economically with its expenditures in its aggressive policies in the region such as Syria and Yemen with simultaneous low oil prices and international sanctions is also working to cut 20% of those who receive subsidies.
Such measures in a country were above 80% of the people are below the poverty-line will have consequences for the regime.