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Iran: The Chronicles of the Subsidy Reform
Author: Mr. Dominique M. Guillaume, Mr. Roman Zytek, and Mr. Mohammad Reza Farzin
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 167
Language:
English
Publication Date:
01 Jul 2011
DOI:
https://doi.org/10.5089/9781462303212.001
ISBN:
9781462303212
ISSN:
1018-5941
Pages:
28
Keywords:
WP; price increase; energy price; f.o.b. gasoline price; price reform; opportunity cost; price stability; Energy; subsidy; oil dividend; fuel price system; terms of efficiency gain; opportunity cost price; oil export price; management authority; price scenario; free market; substitution effect; product price; Inflation; Energy prices; Fuel prices; Public expenditure review; Gasoline
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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On December 18, 2010, Iran increased domestic energy and agricultural prices by up to 20 times, making it the first major oil-exporting country to reduce substantially implicit energy subsidies. This paper reviews the economic and technical issues involved in the planning and early implementation of the reform, including the transfers to households and the public relations campaign that were critical to the success of the reform. It also looks at the reform from a chronological standpoint, in particular in the final phases of the preparation. The paper concludes by an overview of the main challenges for the second phase of the reform.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund