Iran increased gasoline prices for consumers for the second time this year

For the second time in less than a year, Iran increased gasoline prices for large consumer groups, aiming to control domestic energy demand.

On September 6, Iranian government spokesman Fatemeh Mohajerani said that the country will increase gasoline prices for those who use more than 110 liters per month, starting from September 8. The country is trying to solve problems caused by fighting and US economic sanctions.

Prices for the first two quotas remain unchanged. Accordingly, people can still buy the first 60 liters for 15,000 rials per liter and the next 50 liters for 30,000 rials.

However, if you buy more, the price will be 110,000 rials per liter (equivalent to 0.04 USD based on the free market exchange rate). This level is double than before.

Iran is currently one of the countries with the lowest gasoline prices in the world, thanks to strong government subsidies. Since 2007, they began applying a limited gasoline distribution regime, managed based on smart fuel cards attached to each vehicle owner.

The government had previously discussed increasing gasoline prices, but was still delayed due to concerns about people protesting. Iran has repeatedly recorded widespread protests since 2019 because of this issue.

Iranian officials emphasized that under the new policy, prices will only increase for users more than 110 liters per month and that this adjustment is due to "the current situation". In December 2025, Iran also raised prices for high-consuming groups to control increased energy demand.

The latest decision was made in the context of Iranian households struggling with high inflation, devaluation of the local currency and expensive necessities recently. Iranian President Masoud Pezeshkian has signaled to increase gasoline prices from the end of August, but has not announced the implementation date. Iranians are concerned that rising gasoline prices will lead to transportation costs and the prices of many other goods.

Esmail Saqqab Esfahani - Director of Iran's Energy Optimization Organization said last month that the country has a shortage of about 14-15 million liters of gasoline per day. The gap between supply and demand has existed before, but has recently widened due to fighting and US blockade orders. Supply to Iran is therefore interrupted in the context that domestic output has not kept up with demand.

Mohajerani said all additional revenue from the price increase will be used to support the livelihoods of households. However, she did not specify how this money will be allocated.