Fuel price up 400 percent

Iran forces on alert as economic 'surgery' begins

AP: Security forces flooded Iran's capital in a warning against possible unrest as fuel prices surged 400 percent Sunday under plans to sharply cut government subsides and ease pressure on an economy struggling with international sanctions. The so-called economic "surgery" has been planned for months, but was repeatedly delayed over worries of a repeat of gas riots in 2007 and serious political infighting during the standoff with the West over the Islamic Republic's nuclear program. Under the new system, each personal car receives 60 liters (16 gallons) of subsidized fuel a month costing 40 cents a liter ($1.50 a gallon) — up from the just 10 cents a liter. Further purchases of gas would run 70 cents a liter ($2.69 a gallon), up from just 40 cents >>>


19-Dec-2010
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more from Ghormeh Sabzi
 
No Fear

norooz,

by No Fear on

Keeping the price of bread low was the main reason that killed our wheat agriculture. How do you expect farmers to continue producing wheat in Iran when the final product is dirt cheap? Many of wheat farmers in Iran now grow kiwi because there is more money in it.

 


Veiled Prophet of Khorasan

Norooz

by Veiled Prophet of Khorasan on

 

The point of sanctions is to make people miserable. Then have them blame the IR for it. Leading to unrest and anger. That in time is supposed to result in regime change. If I read this news right it may do just that. You can not survive when prices sky rocket. Therefore sooner or later people decide IR has to go. 

At least that is the theory of what should happen. Whether the approach will work is yet to be seen.


norooz

A sudden jump of 400% shows

by norooz on

A sudden jump of 400% shows a very serious shortage of gas and therefore the consumption must be reduced drastically to balance it with supply.

Well, weren't the sanctions supposed to hurt the government and not the public?  Here you have it you sanction lovers. What else can you expect from the government when the income is reducing and spending rising? They have no choice but to trim the fat.  However, i would think they should have trimmed the fat off the fat ones by increasing the property taxes. Not on homesteads, but on second home and investment properties and stop spendings on unnecessary projects.  It is sad that when government tried to increase the taxes on fat Bazaris, they protested and stopped the tax increase by closing shops. but..............

Also a moderate sales tax on luxury items will generate some income. So does sales tax on cigarettes and other harmful items. Of course, if people don't like it, they can stop smoking. How is that? instead of silly useless comments.   Reduction in consumption of gas and cigarette will be good for the public health. They shouldn't reduce the subsidies on necessities such as bread, cooking oil and etc. Instead, they should start investing and producing such necessities with the money generated from taxes and etc.  

I have always believed that having a strong agriculture is the most important step toward independence. If we are not independent in agriculture, we will never be independent no matter how much we advance in other areas. Just as we will never be a united nation without a fair justice system.  I never forget the statement Condoleezza Rice once made about five years ago in response to a question about Iran and crude oil.  She said, "Iranians cannot eat their crude oil".   

The enemy gave us the best advice and we are still dependent.   

 

 


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comrade

by Doctor mohandes on

 Ohhhh... So you are not supporting Him you are just saying, he did not have any other choices right???:)) Biayr chayio Khanoom... Haj agha comrade Manzoori nadashtand:))

You are being way too "hypothetical" here. Martians called and they said they do not need you up there and they think you should go back down to earth:))

Of course The definition of Insanity and insane Gov, must be clarified here. Let us see here... Our government really needed this "transitional experience" had it cooperated with other countries, correct? Or had it been better off and it could even do away with this deal, if it decided to act in the interest of International welfare and Give in to Reality??!!!

 


comrade

A.N's big gamble

by comrade on

What if there was a deadline to meet, regardless? Those who are enforcing the sanction are well aware of this fact. This thing had to be done one way or another. No insane government, even that of the IRI, would expose herself to such predicament for what you call "James Bond"ish adventurism. I have no reservations in saying that if A.N's government acts  similarly to or better than that of other countries that have gone through this hard transitional experience, it will solidify his footing in Iran. 

Never increase, beyond what is necessary, the number of entities required to explain anything.

 


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Open what?????????

by Doctor mohandes on

Comrade 

This is not the right time to Play JAmes bond type games with The country granted How it would affect the people's lives , making it for most, worse than it already is.

That is like wanting to teach your  toddler how to swim, in the middle of the ocean and when there is a fierece storm going on and saying, Well son, it was about time that i took "daddy politics" out of the equation and throw you in there and let you face what you should have faced from the first they you came out of your mommy's womb.

Now is not the time to pull the carper from underneath them and telling them yea, trust us . with a little sacrifice everything is just going to be fine.

HG.

Good talk there:)


afshinazad

People getting screwed

by afshinazad on

great deal for moolahs and every terrorist hezbullah was complaining not getiing enough money. what a susidy cut, they bare trying destroy the middle class for good becuse they are threat to M****f's , we have to wait to see what the hell our people will do, silence = death

DIVANEH: ARE YOU FOR REAL DOBY, HOVEDA WAS SAYING WE HAVE SO MUCH MONEY THAT WE DON'T KNOW WHAT DO WITH THAT AND THAT WAS HIS MISTAKE, BUT NEVER SAID DON'T MEAT.GET REAL. 


hamsade ghadimi

pssst comrade

by hamsade ghadimi on

comrade, you're not adding anything to the discussion with your comment.  of course, the idea of cutting subsidies was not invented by ahmadi.  iran is plagued by a myriad of subsidies.  to a name a few, gasoline, flour, sugar, cooking oil, airlines, railroads, education,...  this geda parvari culture by ahmadi (and governments before him) had to come to a resolution at some point (with or without sanctions).  the sanctions accelarated the process. 

the laughable part is his argument on how cutting subsidies will improve the economy (with a little help from the people by reducing consumption!).  more importantly, it is what he omits in his explanation that is troubling: the role of government in attracting investors, increasing employment, and building of industries which would lead to increases in wages, consumption and ultimately in standard of living. 

the actions of this government (more so than the previous gov'ts) has resulted in sanctions (shunning of investors), a more unfavorable trade position (give higher prices for countries who cheat in the sanctions), and the same old crap of neglecting development of industries (including the oil infrastructure) and not fully utilizing the human capital.

btw, cutting subsidies was not initially world bank or imf's idea.  that's another story.

 


comrade

"Now Just hold the phone there skipper"

by comrade on

You can use whatever language you feel suits you. When we talk about the economy, there are some principles we cannot ignore and we cannot sacrifice them for political purposes. As a matter of fact, one of the chronic problems in the Third World is the holding of the economy hostage to political equations and relationships. Iran has never given a free-market economy a chance, even during the Shah's time.  


 


maziar 58

Kharreb deen Barbari

by maziar 58 on

Too Late ! he said it already that he's gonna take his friend for a ride on his bike . (get it ?) he's driving!    Maziar


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Comrade

by Doctor mohandes on

Now Just hold the phone there skipper.

as much as i hate to say it, You are connecting the .... to the .... You know The g to the sh dealio:)

Even if that was the scenario, Is AN at IMF's door knocking as hard as he can? This is a reaction to a situation which could have been avoided so easily.


Fatollah

JavoonDeerooz

by Fatollah on

same Valian in charge of astan ghods-e razavi? what was his last post(s) ?


Khar

Maziar Jaan I have bettter idea for sargord......

by Khar on

Azyeh Gerash, that Ebnal Manyouk! ;-)


maziar 58

Khar jaan

by maziar 58 on

Sad But True Hamshahri.

there was this tale about a khar that got so tired of ....

Finally killed himself. kharaki suicide ! 

P.S inshala that sargoh ham ou pizza ke mo' yadesh dadome tu galoosh gir koneh. GEL GERASH.    Maziar


comrade

"The lakers or The Dodgers?"

by comrade on

OK, let's forget A.N or even better(?!!) let's say Reza Pahlavi's prime minister had gone to the World Bank for a loan and was told to cut the subsidies as a pre-condition. I remember the late Hoveida was testing the water back then.

Never increase, beyond what is necessary, the number of entities required to explain anything.

 


MOOSIRvaPIAZ

the case against sanctions and war

by MOOSIRvaPIAZ on

is this regime. they will undo themselves but only if we let them and avoid the temptation to cement their rule with our counterproductive  sanctions/war regime.


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Comrade Jan

by Doctor mohandes on

Ey agha!

What bashing? They are ripping people off in the broad day light and still any word of criticism passes off as bashing??

whose side are you anyways? The lakers or The Dodgers?:))


Khar

No wonder sargord was looking for cheap Barbari ;-)

by Khar on

Maziar jaan doosteh e hamshahri wolek damaar in Khar o sham dar avordi aziz, hey migi mardom Khar savari konan, mardom ghosteh khar bekhoran........ where does it end ;-)))


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Zendegi Geran ast?

by Doctor mohandes on

Aghaaa jan zendegi nakonid khob!

Hava aloode ast? Avalan ke aloodeh nabashid . Sanyan. Nafas nakesh agha. Mimiri??? ye do rooz nafas nakesh avazesh pas andaz kon.

I wonder if the "ageh taxi gerooneh otoobos yek geroone" deal still applies? I guess it does until the doomed and dreaded shabe eyd!!


comrade

Pssst

by comrade on

Mahmoud-bashing is a fun game, but the subject of cutting the subsidies is as old as the World Bank, or IMF.  

Never increase, beyond what is necessary, the number of entities required to explain anything.

 


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The worse

by Doctor mohandes on

Economic analysis I have ever heard in my life. So much optmisim, So much confidence, Yet practically  He did not offer an ounce of relief here and To expect people to be in charge of reporting matters and busting the violators reminds me of the same ordeal we had to go trough in turning up the Mohtakereen!! Yeah right. Like that project really worked out.

On the bright side however, These Gorbe raghsani ha will soon be over once they will make it official that they have said the final AKH! and broken their backs under the tremendous pressure.

In the meantime the iranian people need to take comfort of The chenderghaz that the admin. has deposited in their accounts, which accordiing to some recent reports they took it back once already!!

Khoda be dade in melat berese.


maziar 58

..

by maziar 58 on

O.K  Benzeen geran ast ? khar savar shaveed said khomeyni .

Or was it Marie antoinet who said naan geran ast ? cake bokhorid.         Maziar


JavoonDeerooz

Divaneh, It was not Hoveyda who said it,

by JavoonDeerooz on

I believe it was AbdilAzim Valian , also kater executed. 


divaneh

Is meat expensive? dont eat it.

by divaneh on

This has been a necessary move but its management by this government does not give much confidence. Perhaps it should have been done in phases to reduce the impact on people lives.

His comment that people should stop buying the goods if there is a price jump, reminds of me of the comments by Hoveyda when he said "Is meat expensive? Dont eat meat".