Iran: The Chronicles of the Subsidy Reform

Dominique Guillaume, Roman Zytek and Mohammad Reza Farzin

No 2011/167, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 28
Date: 2011-07-01
References: View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25044 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2011/167

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().