Iran cuts portion of gasoline subsidies to reform economy, move delayed since 2012
{{#rendered}} {{/rendered}}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.
{{#rendered}} {{/rendered}}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).