Economist: Gas Price Hike Impact Not Inflationary

Senior economic analyst Saeed Laylaz says there is no scientific evidence that the rise in gasoline prices would definitely have an inflationary impact.
“Despite gas price stability over the past five years, inflation has continued to accelerate. During Mahmoud Ahmadinejad's [former Iranian president] last five years in office, consumer prices increased as well, though energy prices remained unchanged. What actually causes inflation in Iran, like any other country, is the imbalance between supply and demand,” Jamaran.ir quoted Laylaz as saying. 
On Nov. 15, the National Iranian Oil Products Distribution Company announced that gasoline has been rationed and prices raised by at least 50%.
“Private car owners can buy 60 liters of subsidized gasoline every month with a fuel card for 15,000 rials [12 cents] per liter, up 50% [in prices]. Additional purchases [maximum 250 liters a month] will cost 30,000 rials [25 cents] per liter, up 200%,” NIOPDC said.
Noting that not only did he approve of the measure, but he was also among those proposing it, Laylaz said he believed "this appropriate step was taken too late; it should have been implemented 20 months ago".