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Three-minute read<\/em><\/strong><\/p>\n As the Iranian regime grapples with an alarming budget shortfall, Masoud Pezeshkian\u2019s administration reportedly considers raising gasoline prices<\/a> to address the deficit. However, this controversial move, which risks triggering mass protests and worsening the economic strain on ordinary citizens, is not an inevitable solution. In fact, it is a policy choice rooted in the regime\u2019s refusal to cut spending on other non-essential sectors, particularly in areas that benefit the ruling establishment.<\/p>\n The Pezeshkian government is facing a substantial financial deficit, estimated at over 1,000 trillion rials<\/a> in the first half of 2024 alone. This situation worsened after the administration withdrew 350 trillion tomans from the National Development Fund just to manage immediate expenses. Now, with limited options, the regime is leaning towards hiking gasoline prices\u2014a measure that could inflame public discontent, reminiscent of the nationwide uprising following the 2019 price hikes.<\/p>\n Iran’s ongoing fuel crisis stems from a combination of inefficient consumption, outdated vehicles, and mismanagement of the energy sector. Daily gasoline consumption in Iran is alarmingly high, ranging from 120 to 140 million liters, which is exacerbated by the country’s reliance on inefficient, outdated vehicles that consume significantly more fuel than global standards. Many vehicles on Iranian roads require up to 15 liters of gasoline per 100 kilometers, which is far above the international average. This inefficient consumption continues despite efforts to raise prices, as Iran\u2019s automotive industry has failed to modernize. As Ramazanali Sangdovini<\/a>, a member of the parliamentary Energy Committee, pointed out, addressing the inefficiency of these vehicles is crucial to solving the fuel crisis, but the state has yet to take meaningful action.<\/p>\n #Iran<\/a> News in Brief — NCRI-FAC (@iran_policy) August 23, 2023<\/a><\/p><\/blockquote>\n\n
Jalal Rashidi Kuchi, a member of the regime\u2019s parliament, expressed concerns about the consequences of raising #gasoline<\/a> prices, stating, \u201cFundamentally, our approach to gasoline has been wrong. Even now, if we tamper with gasoline prices, people will take to\u2026 pic.twitter.com\/hT5DpjIEU2<\/a><\/p>\n