Sunday, November 17, 2019
Hikes in the cost of petrol are fuelling unrest in Iran
As the cost of gas is rising in Iran, the government has cracked down on citizen protests for stability. Irans oil prices are heavily subsidized by the government and the recent 50% increase in price has been caused by a reduction in subsidized. This has resulted in dramatic instability for its citizens as they cope to deal with cost increases. Will the government cave to its citizens protests over keeping oil prices artificially low or will prices continue to rise for the Iranian citizens?
https://www.economist.com/middle-east-and-africa/2019/11/17/hikes-in-the-cost-of-petrol-are-fuelling-unrest-in-iran
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Violent protests are not the solution to these problems, however, I do empathize with the Irani people. I think it's also important to mention that although Iran has some of the world's cheapest fuel prices, it has limited capacity to refine it and with US leaving the Iranian nuclear deal, these sanctions on refining fuel are back and have really taken a toll on the Iranian economy with high inflation and low foreign investment.
ReplyDeleteI agree, if the protests are violent, then this will never make for a solution, only more trouble. However, a 50% increase is still a big jump when it comes to oil which is used in everything. This will take some time to get used to as civilians, but who knows the government might cave in even though it is unlikely.
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