Subsidy Reforms Will Continue - Governor of Tehran

Tehran’s Governor Morteza Tamadon told reporters today that despite the growing rumors, he subsidy reforms program will continue unabated.

“The targeted subsidies law will continue to be implemented as strong as ever and talks about the (program’s) termination are only rumors,” Tamadon said [Fars News Agency, 29 April].

The reform program, which so far has resulted in the removal of government subsidies of energy products, including gasoline, has been the cornerstone of President Ahmadinejad’s economic revitalization plans. The rapidly growing inflation rate in the past couple of months, however, is seen as a direct result of the reforms and there are pressures on the government to curtail or cancel the future phases of the program.