Iran's Gasoline Pricing Overhaul: New Tier, New Challenges

Iran introduces a new gasoline price tier, raising costs for fuel beyond monthly quotas to 50,000 rials per litre. The revised system aims to curb excessive consumption and ease financial pressure, marking a significant shift in the country's long-standing subsidy strategy and addressing economic challenges.

Iran is set to reform its gasoline pricing structure by adding a new tier, effective December 6. The adjustments will raise the price to 50,000 rials per liter for fuel purchased beyond the monthly quota, marking the addition of a third pricing level in the country's subsidy system.

The new structure retains the current allocation, allowing motorists to buy 60 liters monthly at 15,000 rials. Another 100 liters are available at 30,000 rials, while any excess consumption will now be charged at the higher price originally available only through unofficial channels.

This significant change aims to curb fuel consumption and alleviate pressure on state finances. The government's previous overhaul in 2019 sparked widespread protests after a sharp price increase, highlighting the sensitive nature of this economic strategy.

(With inputs from agencies.)