Cheap Gasoline Or Spark Under Ashes: Agony Of Iran's Regime Continues

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 8. Serious crises continue in various sectors of Iran's economy. One of these crises is, of course, the gasoline crisis, which the Iranian regime has not been able to solve so far.

On November 15, 2019, a quota was set for the sale of gasoline to citizens in Iran in order to reduce gasoline consumption and prevent gasoline smuggling.

Thus, the monthly quota of gasoline at 15,000 rials (about $0.35 at the official exchange rate, $0.03 at the black market) for each private car is 60 liters, while at 30,000 rials (about $0.71 at the official exchange rate, $0.06 at the black market) is 150 liters.

Of course, if we pay attention to these prices, it is noticeable that gasoline is largely cheap in Iran. Because the price of 1 liter of bottled water is around 50,000 rials (about $1.19 at the official exchange rate, $0.10 at the black market).

Due to improper use of gasoline and gas in the country, more than $30 billion of subsidies are provided in Iran annually.

Meanwhile, Iranian Deputy Oil Minister and the CEO of the National Iranian Oil Refining and Distribution Company (NIORDC) Jalil Salari said recently that there is an inequality in the production and consumption of gasoline in Iran.According to him, gasoline consumption in Iran is 110 million liters per day. At the same time, consumption is of the same amount.

Considering that more than 1 million cars enter Iran's consumer market per year and not a single car is scrapped, Iran will have to import gasoline to compensate for the resulting imbalance. Because issuing approximately 1.2 million gasoline fuel cards to new cars (a fuel card is given to each car for the purpose of buying gasoline with a quota in Iran) means an increase in daily consumption by 3.5 million liters.

The increase in the price of gasoline in October 2019 caused serious problems. At that time, Iranian citizens seriously protested, with which the regime had to deal with. Various organizations claimed that thousands of people died in those protests in Iran.

Since then, it has become safe to say that "the Iranian regime is afraid of increasing the price of gasoline." However, the fact that the price of gasoline is cheap in the country, and that the regime sells gasoline to people with subsidies and concessions, does not bode well for the regime, which is already drowning in an economic crisis.

In this context, it is necessary to focus on two issues. The first issue is that various high-level Iranian officials have repeatedly and specifically stated that the price of gasoline in Iran will not increase. The second issue is the rumors about the increase in the price of gasoline.

Almost every day, one of the main issues is discussed in the Iranian media and public - the price of gasoline. Rumor has it that the regime is interested in raising the price of gasoline, but fears that it will not be able to avoid a public backlash or even a new wave of protests.

Apparently, the issue of gasoline in Iran is one of the knotty problems. But this problem is only a small tip of the iceberg of the country's economic crisis.


Trend News Agency

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