Kay Armin Serjoie and Thomas Erdbrink
Washington Post
December 19, 2010

TEHRAN – Police patrolled the streets of Tehran and other cities as Iran on Sunday started a politically sensitive overhaul of the way state subsidies are handed out.

Gasoline prices were hiked overnight by nearly 60 percent, but most Iranians were allocated a small amount of fuel at severely reduced prices for the coming month in order to soften the price shock.

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New, increased prices of products such as bread, heating oil, water and other utilities were expected to be announced on Sunday, officials told state media.

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