IMF Working Papers

Iran: The Chronicles of the Subsidy Reform

By Dominique M. Guillaume, Roman Zytek, Mohammad Reza Farzin

July 1, 2011

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Dominique M. Guillaume, Roman Zytek, and Mohammad Reza Farzin. Iran: The Chronicles of the Subsidy Reform, (USA: International Monetary Fund, 2011) accessed November 22, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Commodities, Energy prices, Expenditure, Fuel prices, Gasoline, Inflation, Prices, Public expenditure review

Keywords: Energy, Energy price, Energy prices, F.o.b. gasoline price, Free market, Fuel price system, Fuel prices, Gasoline, Inflation, Management authority, Oil dividend, Oil export price, Opportunity cost, Opportunity cost price, Price increase, Price reform, Price scenario, Price stability, Product price, Public expenditure review, Subsidy, Substitution effect, Terms of efficiency gain, WP

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/167

  • Stock No:

    WPIEA2011167

  • ISBN:

    9781462303212

  • ISSN:

    1018-5941

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