(Bloomberg) — At least one person was killed as protests erupted in Iran after the government unexpectedly raised gasoline prices, the semi-official Iranian Student’s News Agency reported.
The fatality occurred during clashes in Sirjan in the southern province of Kerman on Friday, ISNA reported, citing the city’s acting governor, Mohammad Mahmoudabadi. Protests also flared in Iran’s second-largest city of Mashhad and and in oil-rich Khuzestan province, home to a large ethnic Arab population, the state-run Islamic Republic News Agency reported.
A special economic commission decided late Thursday to boost gasoline prices by as much as three times and also to ration the motor fuel, IRNA reported. The price hike came without any prior warning.
The protests underscore the difficulties that Iran’s ruling establishment faces as it struggles with an economic downturn caused by U.S. sanctions. President Hassan Rouhani’s government is under immense pressure to offset the impact of a severe plunge in oil exports and avert a national crisis.
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Most passenger vehicles will be limited to 60 liters of gasoline a month, at a price of 15,000 rials a liter, IRNA reported. Any purchases above that amount will be priced at 30,000 rials a liter. Taxis, buses and trucks will have larger fuel allocations. Before Thursday night’s decision, gasoline prices were fixed at 10,000 rials a liter.
The surprise announcement provoked widespread criticism and alarm on social media. Officials said the increase is necessary to raise funds for the country’s state welfare program, which covers 18 million families.
(Updates with one killed from first paragraph.)
To contact the reporter on this story: Abeer Abu Omar in Dubai at [email protected]
To contact the editors responsible for this story: James Amott at [email protected], Bruce Stanley, Sara Marley
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