Painful Iranian subsidy cuts spark mad rushes in banks and food stands
Food, fuel and electricity prices have soared to record levels in Iran after the government cut subsidies on key products in December 2010, making it increasingly difficult for average Iranians to cover basic living costs. As a result, amateur videos show huge crowds rushing to grab the little remaining subsidized goods and government handouts left.
The Iranian government, under President Mahmoud Ahmadinejad’s direction, is phasing out decades-old subsidies for petroleum, gas, electricity and certain food products in an effort to save up to 13 billon euros annually and beef up state coffers, whose already fragile state was further hit by four rounds of United Nations sanctions.
The government raised bread prices by 25% on April 26, the second hike in just four months. A loaf of the popular Sangak bread has gone up from 4,000 rials (36 euro cents) to 5,000 rials (45 cents). Its cost had already tripled when the December subsidy cuts came into effect.
Petrol prices have risen four-fold since December, with each car owner entitled to 60 litres of fuel per month at a subsidised price of 40 cents per litre, up from 10 cents per litre in 2010.
Every Iranian receives the equivalent of about 30 euros per month to compensate the subsidy cuts, but many say this is far from enough to soften the shock of sharply rising living costs.
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unrest in iran..hmm..TPTB will be happy..surprised this got the air time it did..normally stuff like this is controlled..we await further details..
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