Government subsidy for mobile solar unit in Iran

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Subsidies in Iran

OverviewObjectivesImplementationEffects and criticismSee alsoExternal links

The economy of Iran includes a lot of subsidies. Food items, such as flour and cooking oil, are subsidized, along with fuels such as gasoline. However cutting subsidies can cause civil unrest. The Iranian targeted subsidy plan (Persian: طرح هدفمندسازی یارانه‌ها), also known as the subsidy reform plan, was passed by the Iranian Parliament in 2010. The government

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How much do Iran's energy subsidies cost?

In 2010, Iran's energy subsidies were estimated at around $70 billion (Salehi-Isfahani et al 2015), a significant burden that contributed to fiscal deficits and hindered investment in critical infrastructure.

Why is subsidy reform important in Iran?

The policy research to date has focused on subsidy removal, renewable energy integration, energy efficiency improvements, governance restructuring, and the role of international sanctions in shaping Iran’s energy landscape. Subsidy reform is a particularly important and contentious topic due to its implications for Iran’s economy.

Will Iran save $100 billion on subsidies?

Iran wants to save up to $100 billion on subsidies within three to four years. For implementation of the bill, an entity has been established as a duly authorized governmental company under the name "Targeting Subsidies Organization".

What is Iran's targeted subsidy plan?

The Iranian targeted subsidy plan (Persian: طرح هدفمندسازی یارانهها), also known as the subsidy reform plan, was passed by the Iranian Parliament in 2010. The government described the subsidy plan as the "biggest surgery" to the nation's economy in half a century and "one of the most important undertakings in Iran's recent economic history ".

How much money does Iran get from oil & natural gas subsidies?

According to the IMF, until recently [when?] a four-member Iranian household received an average of $4,000 a year in subsidies for oil and natural gas, compared with a typical annual income of about $3,600 a year.

Did Iran abolish the gas subsidy system?

The subsidy system has been inherited from the Iran–Iraq War era but was never abolished. Iran is one of the largest gasoline consumers in the world, ranking second behind the United States in consumption per car.