Iran : The Chronicles of the Subsidy Reform

Author/Editor: Dominique M. Guillaume ; Roman Zytek ; Mohammad Reza Farzin
Publication Date: July 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: On December 18, 2010, Iran increased domestic energy and agricultural prices by up to 20 times, making it the first major oil-exporting country to reduce substantially implicit energy subsidies. This paper reviews the economic and technical issues involved in the planning and early implementation of the reform, including the transfers to households and the public relations campaign that were critical to the success of the reform. It also looks at the reform from a chronological standpoint, in particular in the final phases of the preparation. The paper concludes by an overview of the main challenges for the second phase of the reform.
Series: Working Paper No. 11/167
Subject(s): Agricultural prices | Banking sector | Corporate sector | Energy | Energy prices | Fiscal reforms | Oil revenues | Price adjustments | Price increases | Subsidy payments

Author's Keyword(s): Energy | subsidy | oil dividend.
Publication Date: July 01, 2011
ISBN/ISSN: 9781462303212/1018-5941 Format: Paper
Stock No: WPIEA2011167 Pages: 28
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