Iran's Gasoline Price Hike: Balancing Demand and Public Anger

Iran plans to raise gasoline prices to control fuel demand without inciting public anger. Starting Saturday, heavy users will pay higher rates, aiming to reduce the state financial burden and curb inefficient consumption. This move comes amidst fears of hyperinflation and recession in the Iranian economy.

Iran is set to increase its gasoline prices on Saturday, targeting heavy users in a bid to control growing fuel demand. This move is aimed at averting public discontent while managing the economic strain of subsidized rates.

The new pricing structure will see motorists pay 50,000 Iranian rials per litre if consuming over 160 litres monthly, although a reduced rate remains for others. The revamp arrives amid fears of reigniting protests like those in 2019.

Iranian fuel production struggles to meet demand, necessitating the price hike. Officials cite the inefficiency of cars, fuel smuggling, and summer heat as reasons for the surging consumption. Analysts warn of hyperinflation, urging government caution in preserving economic stability.

(With inputs from agencies.)