Petrol costs less than bottled water in Iran. But a big rise in the price of fuel has enraged the public
rise in the state-controlled price of fuel on November 15th, anger erupted across Iran. Protesters in more than 100 cities blocked traffic, torched banks and burned down petrol stations. They targeted anything that smacked of the state, even mosques and ambulances. It was the most dramatic expression of hostility to the ruling ayatollahs since a disputed election in 2009 sparked a “green revolution” that shook the regime for a year.
So far, the regime shows no sign of backing down. In some places security forces opened fire to protect public buildings. The government turned off the internet and jammed satellite television. Videos shared online showed gunmen shooting into crowds of protesters. Citizens near the sites of protests received anonymous messages saying: “We know you are here.”
It is unclear why the clerics took this gamble. Petrol arouses passions in Iran like no other commodity. Ever since its British-run oilfields were nationalised in 1951, Iranians have considered ridiculously cheap fuel a birthright. Many believe that Ayatollah Ruhollah Khomenei, the Islamic Republic’s founder, promised the people free energy in 1979. Iran has some of the world’s most heavily subsidised petrol. The refined stuff costs less than crude—and less even than bottled water.
All the same, Mr Trump’s sanctions are hurting. Mr Rouhani had budgeted to export oil this year at a rate of 1.5m barrels per day, but Iran is struggling to find buyers for a third of that. Revenues should have covered the subsidy bill, estimated at $25bn , but are 70% below budget, says an Iranian finance official. So the people are paying the price. The fall in the rial’s value and soaring inflation have sharply cut the purchasing power of public-sector workers.
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