An Iranian parliamentarian, Dariush Qanbari, warned that the cuts in
government subsidies would increase prices by 20 to 70 percent over the next
year. On Dec. 19, Iran sent security forces to gasoline stations to prevent
unrest.
Officials said subsidies would be cut on Dec. 22 and enable each
motorist to purchase up to 50 liters a month for about $0.10.
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The previous
ceiling was 60 liters, after which the price of gasoline was set at $0.40
per liter. The new price of partially subsidized fuel has risen to the
equivalent of $0.70 per liter.
"In this stage, we don't want to release prices, rather we are going to
regulate and reform them," Iranian President Mahmoud Ahmadinejad said on
late Dec. 18. "This begins on Sunday, Dec. 19, 2010."