Insider news & Analysis in Iran

Rouhani’s council of ministers/cabinet has approved a 20% increase in water and sewage service fees, just one week after the shocking rise in electricity fees.

Rouhani’s first deputy announced on February 25th a resolution increasing the price of city and village water and sewage services, starting January 21st. This plan was sent to the Ministry of Energy and Department of Planning and Strategic Monitoring in the president’s office.

A Rouhani economy advisor contradicted this policy earlier, stating: “Energy prices will not increase in a single measure and all at the same time.”

Prior to the increase in electricity fees, the prices of many items have also gone up, creating serious concerns for various regime officials. It appears that the next phase in this plan is to increase the prices of gasoline and other energy sources one after another.

“With electricity fees rising, the price of goods and services will increase in a chain reaction”, said one manufacturer to a state media outlet. “An increase in the prices of electricity and other sources of energy will lead to an increase in inflation. Furthermore, some citizens are saying a 24% increase in electricity fee is in contrast to what is described as a slow pace of increasing energy prices,” he added.

Manufacturers gave interviews with the state-run Quds daily that “expressed concerns on the wave of price increases resulting from energy fees increases.”

This daily cited a citizen saying, “The Minister of Economy announced that the price increases will not be shocking. However, the 24% percent increase in electricity fees showed this has a springing nature and is not in line with people’s salaries and loans, especially low-income parts of the society.”

 

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