Iran Subsidy Reforms To Begin In Ten Days

The Iranian government’s historic subsidy reforms will go into effect within the next ten days, it was reported today. During its first phase, the amount of subsidies for gasoline, electricity and other energy-related products will be substantially lowered. Reduction in subsidies on other products, like foodstuff, will follow soon. As part of the reforms, the government will deposit monthly cash bonuses in the bank accounts of the heads of all households throughout the country to soften the blow of the expected dramatic rise in prices.

The government officials are telling reporters today that the amount of cash bonuses would compensate for the rise in prices, especially for the lower income households (hence the phrase "targeted subsidy" reforms used by the government). Previous governments had in the past two decades also talked about subsidy reforms but did not have the will power to tackle any public outcry resulting from higher prices in goods and services.