Iran News: Protests erupt when petrol quota is fixed

Iran News
Credit: Time

In Iran, people have come out on the streets against the government's decision to fix petrol ration and increase the price.

On Friday, the subsidy on petrol was reduced, after which the price increased by at least 50 percent.

The administration says that they want to save money for the welfare of the poor.

Iran is already struggling on the economic front because of US sanctions. In 2015, the US pulled back its steps from Iran's nuclear deal and announced economic restrictions on it.
Iran News
Credit: Washington Post
One person has died in a demonstration in Sirjan city. Government news agency Irna has reported that when the protesters tried to set fire to a fuel warehouse, they clashed with the policemen. There is news of many people being injured.

Cities like the capital Tehran, Karamanshah, Isfahan, Tabriz, Karadz, Shiraz, Yazd, Bushehar and Suri have also been affected by the protests.

In many cities, dozens of angry people blocked their vehicles by putting their vehicles on the roads.

Videos posted on the Internet show that car riders in the capital Tehran are stopping traffic on the Imam Ali Highway and shouting slogans and appealing to the police to support them.
Iran News
Credit: Associated Post

What's in the new rules?

According to the new rules, every vehicle owner will be allowed to buy 60 liters of petrol in a month and for this, he will have to pay a price of 15 thousand riyals i.e. about 32 rupees per liter. If they need more than 60 liters of petrol, then for every liter they will have to pay double the price i.e. 30 thousand riyals.

According to the news agency AP, 250 liters of petrol could be purchased at the rate of Rs 10,000 per liter in the first month.

The government says that the money saved by removing the subsidy from petrol will be spent on the cash allowance of low-income families.

Mohammad Baqar Nobakht, head of the Planning and Budget Organization in Iran, has said that from this month, 1.8 crore families will start receiving additional cash allowance.

President Hassan Rouhani said on Saturday that 75 percent of Iranians are under 'pressure' and that the revenue coming from the new rules will not go into the government treasury, but will be spent on them.
Iran News

US sanctions affect Iran

Iran is among the cheapest fuel countries in the world. It is also among the largest oil producers in the world and every year it imports trillions of dollars of oil.

But Iran's refining capacity is limited and it has become difficult for Iran to buy oil plant parts after the US sanctions.

The US withdrew its feet last year from the nuclear deal between Iran and the six world powers, after which US President Donald Trump again imposed sanctions against Iran.

According to that agreement, Iran agreed to stop its disputed nuclear activities and give entry to international observers in exchange for relief in sanctions.

After the US withdrew from this agreement, Iran is gradually increasing its nuclear activities, although it has been continuously expressing reluctance to make nuclear weapons.

These restrictions have caused a substantial decline in Iran's economy. The price of the currency riyal has come down considerably, the annual inflation rate is on the sky and foreign investors are dragging their feet behind.