Iranian Presidential Hassan Rouhani praised the country's subsidy-cuts plan, and stressed that his government will implement the second phase of the plan in the next few days.
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"The second phase of the subsidy reforms plan will go into effect by the end of this (Iranian) week (i.e. Friday)," Rouhani said, addressing a gathering of the Law Enforcement Police commanders in Tehran on Saturday.
"We should implement the law in this regard and we know that, based on the law, those who are in need and have asked for subsidies should receive it."
On December 19, 2011, Iran began a long-awaited subsidy reforms plan after months of speculation regarding the timing or degree of the subsidy cuts.
The plan included subsidy cuts on energy prices, including the heavily subsidized gasoline prices.
The price of heavily subsidized gasoline (for the first 60 liters purchased by each motorist per month) was increased to 4,000 rials ($0.40) per liter, from 1,000 rials ($0.10) per liter, and all gasoline purchased above the monthly quota was priced at 7,000 rials ($0.70) per liter going forward.
Former President Mahmoud Ahmadinejad announced at the time that the launch of his economic reform plan was aimed at overhauling the country's economy by phasing out energy and food subsidies.
Under the plan all subsidies are to be gradually removed during a five-year period.
The subsidy cuts (also known as targeted subsidies) plan - encompassing key consumer goods such as gasoline, natural gas, and food - is said to be one of the most important undertakings in Iran's recent economic history.
According to the former President Ahmadinejad, the initiative would lead to a better distribution of wealth among the public.
Officials say energy subsidies have cost the Iranian government around 100 billion dollars.
Analysts say that the plan is in line with recommendations from global financial organizations which advised Iran to get rid of a heavily subsidized economy if it wanted to boost its economic power. /SR
