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Report: Iran To Cut Another Portion Of Gasoline Subsidies

Iran's state news agency is reporting that Tehran will raise gasoline prices by some 40 percent as a result of cutting subsidies.

The IRNA report on May 25 said the new prices will take effect on May 26 in the morning. While previous attempts to raise prices have triggered dissent, last year's increase saw no major unrest.

IRNA said the price per liter for subsidized gasoline would be 10,000 rials (34 U.S. cents), up from 7,000 rials (24 U.S. cents). That's about a $1.28 per gallon, compared to the average U.S. price of $2.66 a gallon.

Diesel fuel prices also will rise to 3,000 rials (9 U.S. cents) per liter.

Iran, an OPEC member, consumes 70 million liters (18.49 million gallons) of gasoline daily. In 2007, protesters rioted and damaged gas stations over prices increasing, with authorities arresting dozens.

Based on reporting by IRNA and AP