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Will Iran’s 50% gas price hike pay off for the economy?

Iran’s cutbacks on gas subsidies must be accompanied by a crackdown on corruption if they are to yield real benefits for the government.
A man walks near the remains of gas pump stands, during protests against increased fuel prices, in Tehran, Iran November 20, 2019. Picture taken November 20, 2019. Nazanin Tabatabaee/WANA (West Asia News Agency) via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY - RC2CGD9I6P5F
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On Nov. 15, Iran announced a shift in its gasoline subsidy policies that led to massive social protests and the unprecedented government response of a weeklong internet shutdown. Though it’s too early to have a complete analysis of the recent wave of anti-government protests, it is valid to argue that the political, economic and social costs of the recent decision were very high.

The question now is whether Iran’s sanctions-hit economy will see benefits that could justify the enormous costs of the political fallout.

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