Even among the hard-liners in Iran, there seems to be recognition of one fact after widespread protests, violence and a crackdown on security forces following the spike in government price of gas.
As Iran strives to crush the US sanctions as a result of the unilateral withdrawal of America from Tehran's international nuclear deal by President Trump, Iran, and its Shia civil government will face increasingly tough choices as to where costs can be reduced.
In Iran, despite decades of economic trouble since the Islamic Revolution in 1979, cheap petrol is considered the 4th largest reserve in the world. Gasoline continues to remain one of the world's cheapest in part to ensure that its employees, who often drive taxis to achieve their goals, keep their costs low.
The gross domestic product of Iran per person is just over 6,000 dollars compared with the World Bank's projection of over 62,000 dollars in the US. This disparity has fueled the anger of demonstrators, especially in light of Iran's oil wealth.
But Iran's government has probably seen little choice in its attempt to push its petrol subsidies through changes. According to the International Energy Agency in Paris, Iran invested $26.6 billion on oil subsidies in 2018. Iran invested 15% of its overall GDP or 69.2 billion dollars that year on subsidies for crude, electricity and natural gas.
On Tuesday the prices decided will not increase by the end of the present Iranian year on Mark 21, Minister of Industry and Trade Reza Rahmani. Yet petrol prices simply came, indicating that further changes will probably follow the same path to suppress the scream.
The extent of demonstrations in gasoline prices remained unclear— Iran has not provided domestic statistics. Amnesty International believes that at least 161 people were killed by the protests and security attacks. One Iranian legislator claimed he had arrested over seven thousand people. A maximum of 200,000 protesters marched in protests, said the Minister of the Interior.
In 1978, bank assaults were common in the months before the dissolution of the trone and the Islamic Revolution by Shah Mohammad Reza Pahlavi. Hundreds of banks have been ransacked, angry over corruption, by the Marxists, who hated capitalism, Islamists who opposed rates of usury.
As the capital started pouring out of Iran, the Iranian economy nose-dived.
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