Iran's Gasoline Price Hike: Navigating Public Sentiment

Iran has increased the price of subsidized gasoline as part of efforts to manage rising fuel demand while avoiding public unrest. The new pricing only affects those consuming more than 160 litres per month. Even with the increase, Iran's gasoline prices remain among the lowest worldwide.

Iran has elevated the cost of its subsidized gasoline for most consumers, part of an effort to curb escalating fuel demand without igniting public discontent. This policy is a strategic maneuver to avoid the type of mass protests experienced in 2019.

The revised pricing, starting on Saturday, mandates most vehicles, excluding ambulances, to pay a higher fee of 50,000 rials per litre—equating to 4 U.S. cents based on the free-market rate. This adjustment predominantly affects users exceeding 160 litres monthly, as stated by government spokesperson Fatemeh Mohajerani on state television.

Drivers still have the option to purchase up to 60 litres at the lower rate of 15,000 rials per litre, with an additional 100 litres priced at 30,000 rials per litre. Meanwhile, taxi quotas will remain as they are, Mohajerani added.

(With inputs from agencies.)