The price of gasoline in Iran has shot up by some 300% after the government kickstarted the most controversial and potentially explosive element of its long-term plan to reduce consumption: beginning to phase out subsidies. Massive price hikes were introduced on Sunday, and according to the oil ministry's Shana website led to a 16% drop in gasoline consumption to 53.3 million liters that same day, with demand for premium gasoline sliding by 25%. But analysts predict that demand will creep back up as most Iranians have no alternative means of transport to the car. Iran has some of the cheapest gasoline in the world. Before the increase, motorists paid around 1,000 rials, or 10￠, per liter for the first 60 liters of gasoline they bought each month, and 4,000 rials/liter for volumes above those levels.
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