In oil-producing Iran, a slight hike in gas prices could cause a jump in discontent
PRI - 04/25/2014
Until Thursday, Iranians could purchase up to 16 gallons of gas for just $0.45 per gallon. Now, they are paying $0.83 and, after the first 16 gallons, they’ll pay $1.17 a gallon.
That’s because the government is cutting part of the subsidy it provided for gas in an attempt to improve the economy.
While the new gas prices remain low compared to the US or Europe, for an Iranian family earning a few hundred dollars a month on average, the rise will hurt. The higher gas prices will mean higher prices on everyday items.
I remember in 2007, when I was visiting Iran, a similar price hike went into effect. I headed to my local grocer to buy a few items and noticed a higher price for eggs. I asked about the change.
“Haven’t you heard?” he said, with a surprised look on his face. “There’s been a rise on gas prices. It costs me more to get these eggs here.”