Tehran, Sep 2026 : Iran on Tuesday raised the price of gasoline for consumers exceeding their monthly fuel quota, marking the second increase since December as the country grapples with mounting economic pressures and the impact of months of conflict.
Under the revised pricing system, consumers purchasing more than the monthly quota of 110 litres will now pay 100,000 rials, or roughly seven US cents, per litre. The new rate is double the price that had been in effect for such purchases since December.
The Iranian government did not directly link the latest increase to the war with the United States, instead referring to the country’s “current situation”. Authorities said the additional revenue generated through the higher price would be distributed among households.
The move comes at a politically sensitive time, with fuel prices having repeatedly triggered public anger in Iran. A gasoline price increase in 2019 led to nationwide protests that were met with a major security crackdown. Reports at the time said more than 300 people were killed.
Despite the increase, gasoline remains among the cheapest in the world. However, the latest measure is expected to add to financial pressures on Iran’s population of more than 90 million, particularly as inflation remains high and the national currency continues to lose value.
The Iranian rial has fallen to record lows against the US dollar. The dollar was trading at around 2.22 million rials on Monday, further eroding household purchasing power and increasing the cost of imported goods.
Keramat Veis Karami, chief executive of Iran’s state oil distribution company, said the revised gasoline price would affect about 15 per cent of consumers, according to the official IRNA news agency.
Karami said gasoline consumption reached a record 145 million litres a day in August, substantially exceeding the country’s domestic production capacity of around 122 million litres per day. The resulting deficit has been covered through imports, increasing pressure on the government’s finances and fuel supply system.
Iranian authorities have argued that higher prices for excessive consumption could help curb demand and reduce pressure on domestic fuel supplies. Analysts have also pointed to structural factors behind the country’s high gasoline consumption, including an ageing vehicle fleet, difficulties in obtaining spare parts and inadequate public transportation.
Economists, however, have warned that raising fuel prices could contribute to further inflation in an economy already facing severe financial stress. Iran’s Statistics Center has estimated annual inflation at around 67 per cent.
Cheap gasoline has long been viewed by many Iranians as an economic entitlement, making any attempt to raise prices politically contentious. Fuel-price protests have a long history in the country. In 1964, an increase triggered a strike by taxi drivers, prompting the shah’s government to deploy military vehicles to replace them.
The latest price increase reflects the government’s attempt to balance rising fuel demand and limited domestic production with worsening inflation, currency depreciation and the broader economic consequences of the ongoing conflict.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
