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Protests are about the increase in the price of petrol, a multi-faceted situation. Just one aspect is the money to be made from smuggling fuel: "According to f
by pdm55 7y ago
Protests are about the increase in the price of petrol, a multi-faceted situation. Just one aspect is the money to be made from smuggling fuel:
"According to foreign-based economist Mehrdad Seyed Asgari in an article on Radio Farda's Persian website, the price of one liter of gasoline in Iran is currently about 8 cents while the price in the destination of smuggled fuel in Turkey, Turkmenistan, Azerbaijan, Pakistanis, Iraq, Afghanistan and Armenia is at least 1.23 US dollar. This means that every liter of smuggled fuel brings in a profit of more than a dollar.
The astonishingly low gasoline price in Iran is because the government subsidizes more than 90 percent of the cost; just the opposite of what many other countries do when they heavily tax fuels to reduce consumption.
The devaluation of the Iranian currency in the past one year has made gasoline at least three times cheaper in dollars. That has made smuggling even a more profitable venture."
Another aspect is that the subsidised price of fuel benefits the upper-middle class:
"Another problem is that this subsidy comes out of the country’s wealth but mainly benefits those who have a car and can afford to drive a lot. The richest 10 percent of the Iranian population benefits from the subsidy 11 times more than the poorest ten percent.
In 2016, 43 percent of Iranian families had gasoline fuelled cars. The other 53 percent do not own a car, so they do not benefit from the gasoline subsidy. The shocking reality is that the richest urban families own at least one car while only one percent of the poorest rural families have a vehicle."
If the aim of the price increase is to redistribute wealth, who is doing the protesting? (Facetiously, I suggest that it might be privileged youth who go cruising the streets at night.)
https://en.radiofarda.com/a/iran-fuel-gasoline-smuggling-sanctions/29783028.html https://en.radiofarda.com/a/iran-fuel-gasoline-smuggling-san...
- yyyk 7y agoThe protests are too widespread to be classified as just a 'rich-people's thing'. The regime would not have bothered to suspend the internet if they were so limited. I guess the poor may pay less, but they can afford the hurt less too. In Chile, protesters have a slogan: “This protest is not about 30 pesos, but 30 years”. I think this is the case here. The Iranian economy never did very well, and limiting one of the few things the regime gave to the people was bound to lead to a reaction. That said, these types of protests usually produce little political effect.
- pdm55 7y agoWhat's life like for a young Iranian? "With the sexes segregated at school and boys and girls discouraged from socialising together, trying to get to know members of the opposite sex is a huge preoccupation for Iranian teenagers. They hang around shopping malls, in cafes and parks, parade up and down boulevards and spend lots of time cruising around in cars."[0] I once saw a TV doc on life in Iran. The night-time cruising reminded me a lot of the film "American Graffiti". I imagine Iranian youth would not be happy with any increase in the price of fuel. I take your point though that widespread protests signal more than just the discontent of youth. [0]https://www.lonelyplanet.com/iran/background/other-features/5dfe99c7-3ffb-4664-a7de-4ba79bcc016d/a/nar/5dfe99c7-3ffb-4664-a7de-4ba79bcc016d/361011 https://www.lonelyplanet.com/iran/background/other-features/...
- csomar 7y agoIncreasing the fuel prices will affect everyone, though maybe differently. Transportation costs will increase significantly since labor in developing countries is cheap. This means consumers product prices will also increase. Another angle: This might the tipping point of the inflation crisis Iran is going through. The increase in oil prices might not be significant for the average person, but it might be what pushed people over the edge.
- duxup 7y agoThe benefit might be disproportionate if measured in some way but I don't think that defines who is protesting and their motivation.
- aaomidi 7y agoThese protests have nothing to do with the gas prices. That's just the excuse people are using. People are tired of this government.
- pdm55 7y agoyes, protests are widespread and serious https://twitter.com/hashtag/InternetForIran?src=hashtag_click https://twitter.com/hashtag/InternetForIran?src=hashtag_clic...