Iran doubles petrol costs for heavy consumers to curb usage
Iran has raised petrol prices for motorists who consume more than 110 litres per month, doubling the cost to 100,000 riyals per litre. The government is seeking to reduce consumption as it faces declining revenues and struggles to maintain fuel subsidies amid economic difficulties and sanctions.
The revised pricing structure leaves the first 60 litres unchanged, introduces a higher bracket for the next 50 litres, and doubles the top rate to 100,000 riyals for monthly use above 110 litres. This adjustment comes as U.S. sanctions and a port blockade drain state revenues, making the costly subsidy system increasingly unsustainable.
Parliament speaker Mohammad Bagher Ghalibaf pointed to industrial inefficiency as a major driver of excessive demand, noting domestic production cannot keep pace with consumption. Social media footage of long queues at Tehran fuel stations highlights the strain, marking the second price rise since December amid high inflation and a depreciating rial.
This pricing shift could disproportionately burden middle-class households with multiple vehicles or long commutes, while the industrial sector's inefficiency may limit overall savings. The doubling of costs for heavy users might reduce demand, but it also risks fueling public discontent, as seen in the 2019 protests. With inflation already high and the rial weak, the measure may exacerbate financial strain for some, though the government hopes to preserve subsidies for lower-volume consumers.