Iran has introduced higher petrol prices for motorists who consume more than 160 litres per month, signaling a major shift in the country’s fuel subsidy policy. The change aims to reduce government spending while addressing economic pressures intensified by international sanctions.
The government announced the new pricing structure in early December. The first 60 litres per month will remain at 15,000 rials per litre. The next 100 litres will cost 30,000 rials per litre. However, motorists using more than 160 litres will now pay 50,000 rials per litre.
Officials also clarified that drivers of newly manufactured Iranian cars and imported vehicles will not benefit from subsidies. They will pay the higher 50,000 rials per litre from their first fill-up. Government spokeswoman Fatemeh Mohajerani emphasized that these measures target excessive consumption and aim to manage fuel use more effectively.
President Masoud Pezeshkian highlighted the complexity of adjusting petrol prices, noting that authorities must consider multiple variables before implementing changes. He acknowledged the necessity of higher fuel costs but stressed the need for careful planning and public consideration.
Iran has a history of public unrest related to petrol price hikes. In November 2019, a sudden increase of up to 200 percent sparked nationwide protests. Demonstrators blocked streets, set fire to petrol stations, and attacked police posts in over 40 cities. The government restricted internet access for a week to control the unrest.
The country’s economy has suffered under sanctions imposed by the United States and other Western nations. These measures target Iran’s energy sector and financial systems, complicating efforts to stabilize public spending and manage domestic prices. Petrol prices in Iran remain among the lowest globally despite the new tiered structure.
Experts note that the new pricing system could encourage more efficient fuel use and curb excessive consumption. At the same time, citizens may face rising household costs, especially in urban areas with heavy commuting demands. Analysts warn that balancing economic efficiency with social stability will remain a key challenge for Tehran.
Looking ahead, authorities plan to monitor public response closely. Adjustments may follow depending on consumption patterns and social reactions. Petrol prices in Iran now reflect both fiscal priorities and broader economic pressures, making the issue a critical policy focus.