ALBAWABA - Iran’s government announced on Saturday that it has increased gasoline prices for most drivers, introducing a new tiered system aimed at reducing soaring fuel consumption and limiting cross-border smuggling.
The move marks the first major adjustment to fuel pricing in years, after Tehran repeatedly postponed hikes due to concerns that they could trigger unrest similar to the 2019 nationwide protests.
Government spokesperson Fatemeh Mahajerani said on state TV that, effective immediately, the majority of vehicles — with the exception of ambulances — must purchase gasoline at a higher rate of 50,000 rials per liter (about 4 cents on the open market).
State media reported that the higher rate applies to users who exceed 160 liters per month, while existing subsidized options remain available for lighter consumers. Drivers can still buy 60 liters at 15,000 rials per liter, plus an additional 100 liters at 30,000 rials per liter.
Mahajerani emphasized that the change is intended to control domestic fuel demand and disrupt smuggling networks, adding that taxi allocations will remain unchanged.
The adjustment comes as Iran — one of the world’s cheapest fuel markets — faces increasing pressure on its energy system and rising risks of supply leakage across borders.
