Most Iranians complain about high inflation, at over 29 percent, and rising unemployment. Analysts say the economy will be the main focus of the June 2009 election when Ahmadinejad is expected to run for another four-year term.

The Islamic Iran Participation Front said the government had not saved enough when oil prices were high to maintain spending now the price has dropped to below $50 a barrel. Prices hit $150 in July.

"His main campaign slogan was to share oil wealth fairly ... But instead, his economic policies have caused major problems for Iranians, particularly for lower-income people," Mohsen Mirdamadi, the party's secretary-general, told about 400 people at an annual party meeting.

Critics, both reformists and conservatives, including some who backed Ahmadinejad's first presidential bid, say the leader's high spending is to blame for surging inflation that stood at about 11 percent when he took office in 2005.

"Since the (1979 Islamic) revolution, Iran's total oil income has been $700 billion. Over 36 percent of it was earned during the tenure of office by Ahmadinejad," Mirdamadi said. "But inflation and unemployment rates are the highest now."

Mirdamadi said substantial political reform was needed.

"Reforms are the only solution to the economic crisis," Mirdamadi told the audience, which included reformist former president, Mohammad Khatami.

Khatami has yet to announce whether he wants to relaunch his reform plans by competing in the election. But his allies say he will announce his candidacy in the coming weeks.

Analysts say securing victory in the presidential vote will also depend on gaining support of Iran's clerical establishment.

Supreme Leader Ayatollah Ali Khamenei, Iran's top authority, has supported Ahmadinejad, and his comments may sway millions of revolutionary loyalists. Ahmadinejad is also popular in small towns and rural areas where he frequently doles out cash.

"Ahmadinejad's economic and foreign policies have failed. But he still can win if the leader supports his candidacy," said an analyst at the meeting, who asked not to be named.

Khatami fell out of favour with many Iranians for failing to take a firmer stand against Islamic hardliners during eight years in government. But allies say he could win another vote.

"Wherever people see a leading reformist, they complain about Ahmadinejad's policies. They want Khatami as their president again," Mirdamadi said.

"Winning the election is the first step. Iran's next president should compensate for the losses under Ahmadinejad."