The Competition Council, Iran’s antitrust regulator, has disregarded President Ra’isi’s directive to lower the price of domestically assembled vehicles, leaving prospective buyers disappointed. Given the administration’s apparent influence on the council’s composition, defiance in the face of a direct order from the president indicates discord within the cabinet and lack of authority on Ra’isi’s part.
The process of determining the price of assembled vehicles commenced months ago in March, with various stakeholders, including auto manufacturers and the Consumers and Producers Protection Organization (CPPO), participating in the decision-making. However, this led to an increase in vehicle prices, which President Ra’isi found “unacceptable,” especially in a year designated by the supreme leader as one focused on production growth and inflation control. In response, President Ra’isi instructed his ministers of economy and industries to conduct an investigation into the matter. The Competition Council, composed of members recommended by different ministries and approved by the president, delivered a firm “no” in response to the investigation. They emphasized that the new price adjustments were not based solely on the manufacturers’ desires but were instead founded on data from the CPPO, an entity operating under the ministry of industry and officially responsible for determining prices. Reformist outlets perceive the recent development as indicative of decision-making instability and evidence of a sick economy, causing confusion among consumers. Market expert Mojtaba Nazari sheds light on the confusion, attributing it to a discrepancy between the initial assessment by the ministry of industry regarding vehicles produced with a lower rate currency and the actual higher rate of currency that importers were given. This explanation, however, continues to raise questions about the president’s awareness of the matter and the effectiveness of his order. Additionally, the president’s embarrassing intervention in the matter has enraged merchants in the market, leading to demands for a more open environment fostering genuine competition instead of price-setting orders imposed from above. The conservative outlet Javan criticized the Competition Council and ministers of economy and industry for siding with auto manufacturers and failing to support the president.
Recent developments have painted an image of Ra’isi as weak. This is evidenced by his refusal to take responsibility for the return of the morality police, the resumption of construction at the Miankaleh petrochemical plant despite his explicit order for its cessation, and the ambiguity surrounding his role in allowing a disqualified candidate to participate in the board election of the Iran Chamber of Commerce.
