The state-run Javan daily cited a regime economy expert saying, “If the price of gasoline is increased to 8,000 rials this year, it will most definitely lead to 50 percent inflation. Increasing the price of gasoline to 8,000 rials and similar price hikes will intensify recession due to inflation”.
“Currently, the status quo has reached a point that the middle class is not able to continue its daily chores, and is now considered among the lower class,” said Mehdi Taghavi.
Rouhani’s cabinet has recently began the second phase of eliminating subsidies by issuing forms to five groups of people having an income between 6 to 25 million rials (around $245 to $1,025). This economy expert referred to the steps taken by Rouhani’s cabinet and emphasized eliminating the subsidies was wrong from the very beginning.