The second phase of Iran's national subsidy reform plan will achieve benefits for all Iranians, despite the reform is expected to bring up prices and add fuel to already high inflation, Iran Daily cited Iranian President Hassan Rouhani as saying on Tuesday.

The government will push through the second phase of the subsidy reform plan as early as next week, it said. Rouhani urged concerted efforts to implement the plan. "Everybody should help implement the second phase of the plan," he said.

The increase in prices of gasoline, diesel and compressed natural gas (CNG) will be announced by Friday, Iranian Vice President for Executive Affairs Mohammad Shariatmadari said on Monday.

"Fuel prices are planned to be increased by 60 percent on average. But it will not lead to a dramatic hike in the inflation rate," Mohammad Kordbacheh, an advisor to Rouhani, was quoted as saying by Tehran Times daily. The second phase reform will increase prices but not too rapidly, Kordbacheh said.

The government should take into consideration the livelihood of people in the second phase of the subsidy reform, Shariatmadari said, adding that "We should start our activity with a mild slope. "

In addition to the cut of subsidies on energy, food and utilities, the government is also striving to reduce cash handouts to the people. Iranian lawmakers approved a bill in February to limit cash payments in the second phase only to low-income families. And the government can decide how much cash should be given to the poor.

"We have called on people to register for receiving cash to compensate for the removal of subsidies. The law stipulates that those who do not need cash subsidies should give up voluntarily," Rouhani was quoted as saying by Tehran Times.

Previously, the government paid 45,500 rials, or 14 U.S. dollars, according to street market exchange rate on Tuesday, to almost all Iranians to compensate for a partial cut of subsidies on energy, food and utilities in the first stage of the subsidy reform plan kicked off at the end of 2010 by former president Mahmoud Ahmadinejad.

The second stage of the subsidy reform is expected to save the government 480 trillion rials (about 15 billion U.S. dollars) in the current Iranian calendar year (March 2014- March 2015).

The five-year reform, which would cut subsidies on energy, utilities and food, was originally developed by Ahmadinejad to help relieve financial burdens on the government and help boost the country's economy.