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Iran's Sudden Gas Price Hike Sparks Street Protests in 5 Cities

Michael Lipin

   Iran's abrupt decision to raise gasoline prices as its economy worsens
   under U.S. sanctions and domestic corruption has angered many Iranians,
   prompting protests in at least five cities and online complaints.

   Without prior warning, the state-run National Iranian Oil Products
   Distribution Company announced an immediate 50% increase in the
   country's heavily subsidized gas price early Friday, raising the price
   from about 8 cents to 13 cents per liter. As part of a new rationing
   system, the state body also said each private car would be allowed up
   to 60 liters of gas per month at the new price, which would double to
   26 cents a liter for any gas purchased above the quota.

   Iranian state TV quoted Vice President Mohammad Bagher Nobakht as
   saying the higher gas price and new quota system were intended to raise
   funds for the government to provide cash handouts to about 60 million
   underprivileged people accounting for around three-quarters of the
   population. He said the payments would begin in the next week to 10
   days.

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