The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper discusses the economics of energy price reform in the Islamic Republic of Iran. Economic policies in Iran have traditionally relied on the abundant availability of energy at a low price to finance the country's economic development. Low domestic energy prices have resulted in excessive use of energy. Iran's domestic energy use has been high by international standards, and energy demand growth has exceeded the rate of growth of per capita income, in contrast to the experience of the majority of low and high-income countries.