From one of the lowest energy intensity users in the world in 1980, Iran has become one of the major consumers of energy with very high energy intensity.[1]
The economy of Iran includes a lot of subsidies.[2] Food items, such as flour and cooking oil, are subsidized, along with fuels such as gasoline.[3] However cutting subsidies can cause civil unrest.[4]
The Iranian targeted subsidy plan (Persian: طرح هدفمندسازی یارانهها), also known as the subsidy reform plan, was passed by the Iranian Parliament in 2010. The government described the subsidy plan as the "biggest surgery" to the nation's economy in half a century and "one of the most important undertakings in Iran's recent economic history".[5] The goal of the subsidy reform plan is to replace subsidies on food and energy (80% of total) with targeted social assistance, in accordance with a Five Year Economic Development Plan and a move towards free market prices in a 5-year period.[6] The subsidy reform plan is the most important part of a broader Iranian economic reform plan.[citation needed]
According to the government, approximately $100 billion per year is spent on subsidizing energy prices[7] ($45 billion for the prices of fuel alone) and many consumable goods including bread, sugar, rice, cooking oil and medicine.[8][9][better source needed] However, some experts believe direct subsidies are about $30 billion, depending on oil prices.[10][11][better source needed]
The subsidy system has been inherited from the Iran–Iraq War era but was never abolished. Iran is one of the largest gasoline consumers in the world, ranking second behind the United States in consumption per car.[12] The government subsidy reform has been years in the making, for reasons which are unclear.[1][13][14][15] Iran's Supreme Leader has backed the government’s subsidy reform plan.[16]
^ abCite error: The named reference Turq5 was invoked but never defined (see the help page).
^"If Raisi wants to improve the Iranian economy, price controls are where to start". Atlantic Council. 2021-06-29. Retrieved 2021-12-26.
^"Trouble Ahead? Subsidies in Iran Could be About to End". iranwire.com. Retrieved 2022-05-13.
^"The Farda Briefing: First Signs Of Civil Unrest As Bread Prices Soar In Iran". RadioFreeEurope/RadioLiberty. Retrieved 2022-05-13.
^Cite error: The named reference AFP2 was invoked but never defined (see the help page).
^"Resources - Economic Indicators". Atieh Bahar. 2008-10-20. Archived from the original on 2011-05-13. Retrieved 2010-01-30.
^"Senior Official Says Iran Paying $100 Billion In Energy Subsidies". Iran International. Retrieved 2022-05-13.
^"Why Iran's Ahmadinejad is pushing to cut popular government subsidies". Christian Science Monitor. 2010-04-30. Archived from the original on 2010-05-03. Retrieved 2010-05-05.
^"Iran daily: Energy Subsidies Reach $84b". Archived from the original on May 6, 2008. Retrieved 2008-04-27.. Retrieved February 13, 2010.
^"Iran may limit cooperation with nuclear watchdog". Los Angeles Times. 2010-12-18. Archived from the original on 2010-08-25. Retrieved 2010-12-23.
^Bloomberg: Iran Gasoline Consumption Falls 13% After Government Price Rise Archived 2012-11-04 at the Wayback Machine Retrieved January 9, 2011
^United States Energy Information Administration: Environmental Issues in Iran (2000) Archived 2008-10-09 at the Wayback Machine. Retrieved August 16, 2009.
^"President: Opposition to subsidy plan is 'politically motivated'". Tehran Times. 2009-12-07. Archived from the original on 2011-07-16. Retrieved 2010-01-30.
^"Majlis special committee to study economic reform plan". Tehran Times. 2008-06-24. Archived from the original on 2011-07-16. Retrieved 2010-01-30.
^Dr. Amuzegar, Jahangir (2005-10-03). "Iran's Third Development Plan: an Appraisal". Archived from the original on 2011-11-29. Retrieved 2010-07-26.
^New York Times: Supreme Leader in Iran Supports Bid to Cut Subsidies Archived 2018-01-19 at the Wayback Machine Retrieved January 6, 2011
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