TEHRAN: Iran President Masoud Pezeshkian on Thursday warned domestic suppliers against hoarding or overpricing goods as his government implements a major subsidy reform aimed at easing pressure on consumers, state media reported.
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“People should not feel any shortage in terms of goods’ supply and distribution,” Pezeshkian said, urging ministries and regulators to ensure stable supply lines and tighter price monitoring amid nationwide protests over rising living costs.
The overhaul reverses long-standing policies that had granted importers preferential access to foreign exchange at rates significantly cheaper than those available to ordinary Iranians. Iranian officials say the change is intended to shift state support directly to consumers while curbing distortions and rent-seeking in the import market.
Under the new scheme, Iranians are expected to receive around $7 per month to buy basic goods at designated grocery stores. However, the price of staples such as eggs and cooking oil has climbed sharply since the policy was announced, fueling public frustration.
Security forces fired tear gas in Tehran’s Grand Bazaar earlier this week as traders and shoppers protested the rising costs, according to local reports. Rights groups have documented demonstrations in several cities over inflation and declining household purchasing power.
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Tehran argues the reforms are essential to address fiscal strains and reduce dependence on subsidised imports. Critics warn that without broader measures to tackle inflation and weak currency reserves, the changes risk intensifying economic hardship in the short term.