Tehran’s deputy governor Gholam-hossein Aaram said: “Based on the agreement reached with Tehran’s Taxi Organization, the public bus and public metro companies, the fares of public transportation will increase 20 to 25 percent beginning 21 April 2014.”

The increase comes after Monday’s announcement of 20 to 30 percent increase in natural gas prices. In the past month also thee has been 20 percent increase in water and electricity prices.

Some members of the regime’s parliament and experts have warned that resentment is building over the steep price increases and that public protests could follow.

More than six months after Hassan Rouhani took office, hopes of a quick economic recovery are fading among ordinary Iranians, business owners and investors.

With the start of the Iranian new year, on March 21, the government has begun phasing out subsidies on energy in a process that could trigger price rises of up to 90 per cent for gasoline and other utilities, raising the cost of all basic commodities.