• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours Sources confirm Trump to sign two new Executive orders.
  • 16 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 1 min Sometimes I Think Trump Supporters on This Forum Are Russians
  • 3 hours No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 10 hours In a Nutshell...
  • 28 mins Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 15 hours A Real Reality Check on "Green Hydrogen"
  • 5 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 1 day Why Wind is pitiful for most regions on earth
  • 1 day Why Oil could hit $100
  • 1 hour Putin Paid Militants to Kill US Troops
  • 7 hours Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history

Iran’s Six Months of Targeted Fuel Subsidies Deemed Successful

On 19 December 2010 Iran introduced targeted subsidies in an effort to control inflation. Iran was urged to do so by international organizations such as the International Monetary Fund.
 
Prior to the implementation of the targeted subsidies, Iranian analysts noted that even a small rise in the price of fuels over the past several years, particularly gasoline used by the general public, caused a ripple effect throughout the economy and resulted in price increases of many goods and services, Mashhad Khorasan newspaper reported.
 
One of the successes resulting from the implementation of the targeted subsidies was a reduction in the nation’s fuel consumption. While Iranian economists speculated that one possible cause of the reduced consumption could be a reduction in the smuggling of these fuels rather than decreased use by the people, a part of the subsidy that went straight into the pockets of smugglers and foreign consumers of smuggled products was cut off and the new reformed energy fuel price reduced the profitability of fuel smuggling.
 
The program has had shortcomings, however. Several months before the implementation of this law, concerns over compensating for the increase in the costs of production units, particularly those that use high amounts of energy, were reduced. Since the subsidy program was introduced, in practice, allocation of the subsidies in this sector was slow and support credits were low, while credits in the industrial sector were also allocated on a smaller scale than they should have been and the ones that were distributed were in the form of an energy credit line.

By. Charles Kennedy, Deputy Editor OilPrice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News