Key facts
- Iran has implemented a new, higher gasoline price for consumers exceeding a monthly quota of 110 liters.
Iran has increased gasoline prices for its heaviest consumers, marking the second such hike since December. The move aims to curb consumption and generate revenue for households, but adds to inflationary pressures in an already struggling economy.
This gasoline price increase in Iran exacerbates existing economic pressures, including high inflation and a weakening currency, potentially impacting the daily lives of millions and risking social unrest, as seen in past incidents.
Iran has raised gasoline prices for its heaviest consumers, marking the second such increase since December. The state media reported the change, citing the "current situation" without explicitly mentioning the war with the United States. Under the new system, consumers who purchase more than their monthly quota of 110 liters (29 gallons) will now pay 100,000 rials (about 7 cents) per liter, which is double the price implemented in December. The government announced that the additional revenue generated from this price hike will be distributed to households.
Keramat Veis Karami, the CEO of the state oil distribution company, stated that the new gasoline rate will affect 15% of consumers. He also noted that daily consumption reached a record high of 145 million liters in August, while domestic production capacity stood at 122 million liters per day, necessitating imports for the remainder of the supply. Experts suggest that such price increases can be sensitive and contribute to inflation, with past hikes, like one in 2019, having sparked nationwide protests. Despite the increase, Iran's gasoline prices remain among the lowest globally, but the change adds to the daily economic pressures faced by its population, which is already contending with a depreciating currency and weakened purchasing power.