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Country Risk

Risk of protests and riots over higher fuel prices in Iran mitigated by police forces' deployment at petrol stations

29 May 2015

EVENT

Mohammad-Bagher Nobakht, President Hassan Rowhani's advisor for supervision and strategic affairs, announced on 25 May the implementation of the third phase of Iran's subsidy reform programme, passed into law in 2010.

A group of Iranian police officers at funeral ceremony of Brig Gen Hamid Taqavi, a senior Revolutionary Guard commander who was killed during a battle against the Islamic State, on 29 December 2014. (PA)A group of Iranian police officers at funeral ceremony of Brig Gen Hamid Taqavi, a senior Revolutionary Guard commander who was killed during a battle against the Islamic State, on 29 December 2014. (PA)

This phase includes replacing motorists' subsidised allowance with a single higher price of USD0.35 per litre (up 40%) as well as increasing fuel prices by 15% for residential and commercial (not industrial and agriculture) consumers. Although motorists holding fuel-rationing cards (nearly everyone) may continue purchasing fuel at the subsidised prices until September, there has been a widespread rush to stockpile fuel, resulting in the sale of additional 10 million litres overnight.



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