Es’haq Jahangiri said the first phase, implemented by former president Mahmoud Ahmadinejad, stoked up inflation and pushed the economy into stagnation, the Petroenergy news network SHANA reported on Sunday.

He said Rouhani’s administration would not have implemented the second phase of subsidy reform plan had the first phase not brought about economic malaises like budget deficit.

“That is why the government decided to raise the prices of energy carriers at a steady pace,” said Jahangiri.

Under Ahmadinejad, subsidies were cut and Iranians were receiving monthly cash handouts.