The first step of targeted subsidy reform was implemented in the late of 1389. The main purpose of this was to reform the price regime, optimal allocations of resources and proper redistribution of subsidy. The first step faced with shortcomings and successes which considering them has a vital role in the most effective implementation of the next steps. Price increases, distributing the resources among household, support the manufacturing sector and the government interventions are the main issues for implement the next steps. Experiences of successful countries in energy price liberalization showed that having comprehensive planning, public awareness before implementing the plan and understanding the necessities of the reforms, establishment the good coordination with various beneficiary groups, consultation with parliament, local non-governmental organization, business communities and labor representative, developing a wide compensation package in order to prevent the poverty, supervising implementation, timing of the reform, comprehensive policy about subsidy and strong political will are the main reasons for the success of these countries. Therefore identifying the target groups, consultations with beneficiaries and establishment of information campaigns, selecting the good time for proper implementation, changes in cash payments, providing necessary requirement for fuel substitution, moving to single exchange rate and support of manufacturing sector in the form of effective component in the business environment are the main requirements for implementing the next steps of targeted subsidy.