domingo, 19 de dezembro de 2010

Iran's cut in fuel and food aid raises protest fears


Iran has cut energy and food subsidies, risking a repeat of angry protests which followed fuel rationing in 2007.
The cuts, introduced on Sunday, mean a four-fold rise in the price of petrol and reduced subsidies for bread.
Each car will get 60 litres of fuel per month at a subsidised price of 40 cents per litre, up from 10 cents per litre.
Iran, whose fragile economy has been hit by United Nations' sanctions, has said it pays about $100bn (£64bn) in subsidies annually.
In 2007, protesters set alight dozens of petrol stations after the system of fuel rationing was introduced.
News agency reports on Sunday said that there was a heavy policy presence in the capital Tehran, but there were no reports of trouble.
Iran's President Mahmoud Ahmadinejad said on Saturday that the cuts in subsidies were the "biggest surgery" to the economy in 50 years.
Mr Ahmadinejad also said his government was paying $4bn in bread subsidies, which are being gradually phased out. BBC News