Iran: Gasoline Price Doubles Beyond 110 Liters Per Month

The price of gasoline in Iran is increasing from 8 September for motorists exceeding 110 liters per month: the additional liter rises from 50,000 to 100,000 rials, while the two subsidized quotas remain unchanged.

On Tuesday, 8 September, Iran implemented a targeted gasoline price hike for heavy consumers. In Tehran and across the country, the new pricing applies only to monthly consumption beyond 110 liters, while the volumes benefiting from subsidized rates remain unchanged.

Motorists retain a first quota of 60 liters at 15,000 rials per liter, then an additional 50 liters at 30,000 rials. Beyond this total of 110 liters, the rate doubles from 50,000 to 100,000 rials per liter for the third tier.

Government spokesperson Fatemeh Mohajerani linked the measure to rising consumption and the challenges of balancing supply and demand. The plan had been discussed and then postponed in a country where fuel price hikes remain politically sensitive since the protests of 2019.

About 15% of consumers are estimated to be affected by the new tier, according to data attributed to the public distribution network. Consumption recently reached up to 145 million liters per day, while national production capacity stands around 122 million liters daily.

This increase comes amid an already strained economic environment due to sanctions, the depreciation of the rial, and the consequences of the regional conflict. On international markets, Brent crude recently approached 100 dollars following new strikes between the United States and Iran, heightening concerns over energy supply in the Gulf.

The new pricing structure therefore does not affect the first two subsidy levels but significantly raises costs for usage beyond the monthly cap. Authorities aim to contain demand that exceeds domestic production without immediately generalizing the increase to all motorists.

This is the second adjustment to fuel prices since December, a period during which Iran had already modified part of its pricing system to try to control consumption.