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Iran petrol price hike: Protests erupt over surprise rationing Iran petrol price hike: Protests erupt over surprise rationing
(about 2 hours later)
Protests have erupted across Iran after the government unexpectedly announced it was rationing petrol and increasing its price, state media report. Protests have erupted across Iran after the government unexpectedly announced it was rationing petrol and increasing its price.
Prices went up by at least 50% on Friday. Prices rose by at least 50% on Friday as subsidies on petrol were reduced.
The authorities have reduced heavy subsidies on petrol prices to curb the impact of US sanctions which have badly affected Iran's economy. The authorities say they want to free up money to help the poor.
Iran faces stiff sanctions on oil exports after the US pulled out of a nuclear deal with world powers in 2018. Iran is already suffering economically due to stiff sanctions imposed by the US after Washington decided to pull out of the 2015 deal with other powers on curbing Iran's nuclear ambitions.
State news agency IRNA reported "severe" protests in Sirjan, central Iran, on Friday night as "people attacked a fuel storage warehouse in the city and tried to set fire to it". One person was killed during protests in the central city of Sirjan. State news agency Irna said there were clashes with police when protesters attacked a fuel storage warehouse and tried to set fire to it.
One person was killed and others were injured, the semi-official ISNA news agency quoted Sirjan's governor as saying. Several more people were injured.
Protests also broke out in other cities including Mashhad, Birjand, Ahvaz, Gachsaran, Abadan, Khoramshahr, Mahshahr, Shiraz and Bandar Abbas, it added. Other cities were also affected including the capital, Tehran, Kermanshah, Isfahan, Tabriz, Karadj, Shiraz, Yazd, Boushehr and Sari.
In Mashhad, Iran's second largest city, dozens of angry demonstrators blocked roads by abandoning their cars in traffic, AP news agency reported citing Iranian state media. In several cities, dozens of angry motorists blocked roads by turning off car engines or abandoning vehicles in traffic.
Videos posted online purportedly showed motorists in the capital, Tehran, stopping traffic on the Imam Ali Highway and chanting for the police to support them.Videos posted online purportedly showed motorists in the capital, Tehran, stopping traffic on the Imam Ali Highway and chanting for the police to support them.
Another clip show what appeared to be a roadblock across the Tehran-Karaj motorway, hit by the season's first heavy snowfall. Another clip shows what appeared to be a roadblock across the Tehran-Karaj motorway, hit by the season's first heavy snowfall.
How do the new regulations work?
Under the new measures, each motorist is allowed to buy 60 litres (13 gallons) of petrol a month at 15,000 rials ($0.13; £0.10) a litre. Each additional litre then costs 30,000 rials.Under the new measures, each motorist is allowed to buy 60 litres (13 gallons) of petrol a month at 15,000 rials ($0.13; £0.10) a litre. Each additional litre then costs 30,000 rials.
Previously, drivers were allowed up to 250 litres at 10,000 rials per litre, AP reported. Previously, drivers were allowed up to 250 litres at 10,000 rials per litre, AP reports.
The revenues gained from removing subsidies on petrol will be used for cash payments to low-income households, the government says.The revenues gained from removing subsidies on petrol will be used for cash payments to low-income households, the government says.
The head of the Iranian Planning and Budget Organisation, Mohammad Baqer Nobakht, said that from this month, 18 million families would get an extra cash allowance as a result of the price increase.The head of the Iranian Planning and Budget Organisation, Mohammad Baqer Nobakht, said that from this month, 18 million families would get an extra cash allowance as a result of the price increase.
The new measure is expected to bring in 300tn rials per annum, he said on state television.The new measure is expected to bring in 300tn rials per annum, he said on state television.
President Hassan Rouhani said on Saturday that 75% of Iranians were currently "under pressure" and the extra revenues from the petrol price hike would go to them and not the treasury, AFP news agency reports. President Hassan Rouhani said on Saturday that 75% of Iranians were currently "under pressure" and the extra revenues from the petrol price hike would go to them and not the treasury.
Cheap fuel How have fresh US sanctions affected Iran?
Iran has some of the world's cheapest fuel prices due to heavy subsidies and the fall in value of its currency.Iran has some of the world's cheapest fuel prices due to heavy subsidies and the fall in value of its currency.
It is also one of the world's largest oil producers, with exports worth billions of dollars each year. It is also one of the world's largest oil producers, with exports worth billions of dollars each year. But it has limited refining capacity and sanctions have made it difficult to obtain spare parts for oil plants.
US President Donald Trump reinstated the sanctions against Iran last year after abandoning the landmark 2015 nuclear deal between Iran and six world powers. Sanctions were reimposed last year after US President Donald Trump abandoned the landmark nuclear deal between Iran and six world powers.
Under the accord, Iran agreed to limit its controversial nuclear activities and allow in international inspectors in return for sanctions relief.Under the accord, Iran agreed to limit its controversial nuclear activities and allow in international inspectors in return for sanctions relief.
Since the US left the deal, Iran has been gradually stepping up its nuclear activity in breach of the accord, though it has consistently denied wanting to develop nuclear weapons.
The sanctions have led to a sharp downturn in Iran's economy, pushing the value of its currency to record lows, quadrupling its annual inflation rate, driving away foreign investors and triggering protests.The sanctions have led to a sharp downturn in Iran's economy, pushing the value of its currency to record lows, quadrupling its annual inflation rate, driving away foreign investors and triggering protests.