BEIRUT

Regional

Iran cuts portion of gasoline subsidies

Iranian President Hassan Rouhani speaks in a military parade marking National Army Day in front of the mausoleum of the late revolutionary founder Ayatollah Khomeini just outside Tehran, Iran, Friday, April 18, 2014. Ahead of the parade, Rouhani underscored his moderate policies and outreach to the West in a speech. (AP Photo/Vahid Salemi)

TEHRAN, Iran: Iran has cut a portion of its gasoline subsidies, nearly doubling some prices at the pump as part of a second round of cuts delayed since 2012.

Friday's move will test public support for moderate President Hassan Rouhani in a nation battered by inflation and economic sanctions imposed over Iran's controversial nuclear program.

Subsidies have kept the cost of gasoline artificially low for consumers in OPEC-member Iran. The slash aims to release government money for production and infrastructural projects.

Under the new pricing scheme, each liter jumped to 7,000 rials (22 cents) from 4,000 rials (12 cents).

That works out to about 83 cents a gallon under the new pricing structure, compared to 45 cents under the former. Each car has a monthly ration of 60 liters (15.85 gallons).

 

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