Iran to Raise Gasoline Prices for High-Usage Consumers Starting Tuesday
Quick Look
- Iran will increase gasoline prices for consumers using more than 110 liters per month starting Tuesday, raising the third quota price to 100,000 Iranian rials per liter (~4 U.S. cents).
- Lower-usage consumers will retain subsidized rates.
- The government cited economic pressures from U.S. sanctions and postponed broader hikes due to protest risks, recalling 2019 unrest over similar increases.
AI-generated summary
Why It Matters
Iran maintains some of the world's lowest gasoline prices through heavy subsidies, but U.S. sanctions have constrained government finances, prompting periodic adjustments to fuel pricing. A similar increase in 2019 sparked widespread protests across the country.
Iran will raise gasoline prices for users exceeding 110 liters monthly starting Tuesday. The price for the third quota will increase to 100,000 Iranian rials per liter. This change aims to address economic challenges and sanctions impacting the nation. Consumers using less than 110 liters will maintain current subsidized rates. The government postponed a broader price hike due to potential public unrest.
Iran will raise the price of gasoline for users surpassing 110 litres per month starting on Tuesday, a government spokesperson said on Sunday, as it steps up efforts to tackle problems created by the war and crippling U.S. economic sanctions.
The price of the first and second quotas, which include 110 litres, will remain unchanged, but the price of the third quota will be raised to 100,000 Iranian rials per litre (around 4 U.S. cents based on the free-market rate), Fatemeh Mohajerani said in comments carried by state media.
The increase in Iran's gasoline price, which is one of the lowest in the world, was discussed by the government and postponed amid concerns it could trigger new protests. Iran experienced widespread protests in 2019 over the same issue.
The higher fuel price will only affect consumers who require more than 110 litres per month and is due to "current conditions", Mohajerani said.
Other motorists can still buy up to 60 litres at 15,000 rials per litre and an additional 50 litres at 30,000 rials per litre, she added.
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In December, Iran partially raised the price of its subsidized gasoline for most users, as the OPEC member sought to control rising fuel demand.
What to Watch
AI outlook — possibilities, not facts
The government will monitor public reaction and may adjust or reverse the price increase if significant protests emerge.
Possible · Within weeks
Open Questions
- How many consumers exceed the 110-liter monthly threshold?
- What is the expected fiscal impact of this price adjustment?
- Are there plans for further subsidy reforms if economic conditions worsen?
