took effect Sunday. The government has not issued an official price list, however. Announcements—some conflicting—have been made by various officials and others claiming knowledge.
For example, the Green Movement said bus fares would rise 15 percent. But the Tehran public transportation authorities said Metro (subway) fares and bus fares would not change.
A government website said bread prices would remain unchanged. But President Ahmadi-nejad said in his television appearance announcing the start of the subsidies-to-welfare program that 40,000 rials ($4) a month would be added to welfare payments to cover the increased price of bread.
Given that confusion, here are some of the major price hikes seen by the Iran Times.
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The largest price increase confirmed is a five-fold hike in the cost of natural gas for home heating and cooking. It will now cost about 7 US cents per cubic meter.
Electricity prices have tripled to 4.5 US cents per kilowatt hour.
Water will almost quadruple to 28 US cents per cubic meter.
White oil, used by many of the poor for heating, will double in price.
Gasoline is the most watched item covered by subsidies. The price of rationed gasoline was quadrupled from 1,000 rials a liter to 4,000 rials. The price of unrationed gasoline went from 4,000 rials to 7,000 rials a liter. Beyond the cheap ration quantity, Iranians may buy any quantity they wish at the unrationed price. Here is how the change looks when expressed in US gallons and currency.
Monthly
Ration Price Unrationed
Before 16 gals $ .365 $1.46
Now 13 gals $1.46 $2.55
Given the number of vehicles in Iran and the volume of gasoline sold daily, the average Iranian driver consumes 60 gallons a month. Combining the rationed and unrationed gasoline prices above, that means the typical Iranian driver will now pay about $2 a gallon—less if he drives less, more if he drives more.
Plane and train ticket prices just went up a few weeks ago and the Transport Ministry said they were not going up again right now, but that prices would be reviewed at Now Ruz. Jet fuel prices are being hiked.
