One would think that the Mullahs would think more of their domestic problems than fabricating enemies so to pursue nuclear weapons.
TEHRAN — Gasoline prices nearly quadrupled on Sunday and riot police guarded filling stations around the capital as deep cuts in subsidies on fuel and other essential goods took effect.
And they are sitting atop one of the richest oil reserves on the planet.
After midnight on Sunday, the price of subsidized gasoline jumped to 38 cents a liter from 10 cents a liter. Similar increases went into effect for compressed natural gas and diesel fuel, with subsidy reductions for other commodities expected to be phased in gradually.
Security forces with riot shields took positions at gas stations in Tehran, bracing for a possible repeat of the unrest that followed the introduction of gasoline rationing in 2007, but there were no reports of violence.
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He said that the prices of water, electricity and natural gas would increase “gradually,” and that the subsidy for bread would also be gradually eliminated. He predicted that the bottom 60 percent of income earners would be better off under the new plan while the wealthier 40 percent would “need to economize.”
That is a revolutionary concept new to me.
The government tried to cushion the blow by making a one-time payment to each household of about $77. Although the funds were deposited in October, Iranians were not allowed to withdraw the money until Sunday, the day the reductions took effect.
Despite Mr. Ahmadinejad’s call for Iranians to refrain from spending the money immediately in order to help prevent a sharp jump in inflation, witnesses reported that many customers were withdrawing the full amount at once.
“I want to spend it on living costs,” said one bank customer quoted by Iran’s semi-official Fars news agency. “I know that prices haven’t risen yet but I know for sure that they will.”
FULL New York Times STORY
Funny how those kind of gimmicks never seem to work out as expected.
This will be interesting to watch.
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