Ghalibaf campaign promises need raise in fuel prices; Shafieiee

"Saeede Shafiei", University Professor, in a piece for ILNA, regarding presidential candidate’s campaign promises in boosting subsidies wrote: "For achieving Presidential candidate, "Mohammad Bagher Ghalibaf", campaign goals in raising subsidies by threefold, we need to increase fuel prices dramatically." 

In her note, titled verification of Ghalibaf’s boosting cash subsidies, she added: "Recent claims from conservative candidate in increasing cash subsidies can’t be verified and the sources for provision of such raise in subsidies is unknown. It’s also unclear whether the boost is in the country’s interest or not?" 

She further wrote: "Ghalibaf promised to increase cash subsidies to 150 thousands toman. Ghalibaf also has added: "Subsidies are the people’s right and everywhere around the world, when a nation gets into difficulties or specific condition, the state should support them.""

"Currently, according to official statistics, the 11th cabinet is paying out 3500 billion toman in cash subsidies while the government was able to not to let fuel prices to increase further. Conservative candidates are proposing raise in the amount by 3 to 8 fold while they are not considering the history and report card of the program in the past. They seem to be just focusing on their populistic mantras and are not at all regarding the financial consequences that such a program might have on the country’s economy" she emphasized. 

According to Shafeei, the number of people receiving such subsidies is hitting 70 million and for the government to compensate for the amount, it is necessary to have around 252 billion toman income from energy sources. 

"If Ghalibaf is going to have such income, he needs to increase the fuel prices up to 2400 woman and raise the Gasoline prices up to 800 toman. Otherwise the act is not possible. Unless he has other sources which we are not aware of" she further underlined.  

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