Iran rolls out three-tier gasoline pricing system

Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.

Iran has introduced a new three-tier pricing system for subsidized gasoline, marking the country’s first fuel price adjustment since 2019. Under the revised scheme, which took effect on Saturday, motorists can purchase up to 60 litres per month at the lowest subsidized rate. An additional 100 litres is available at a higher price, while any fuel beyond 160 litres is charged at a new top rate. Authorities say the measure is aimed at curbing rising fuel consumption amid a weak currency and ongoing economic sanctions.

Despite the changes, gasoline prices in Iran remain among the lowest in the world. Officials have approached the adjustment cautiously, mindful of the 2019 fuel price hike that triggered nationwide protests and a deadly crackdown.

Reactions on the streets of Tehran were mixed but largely calm. Taxi driver Majid Ebrahimi expressed frustration with the government’s focus on fuel prices, saying it would be better to control the rising costs of other goods such as dairy, which “go up five or six times a year,” rather than fuel. Meanwhile, a motorcycle driver welcomed the change, noting that “fuel was very cheap in Iran, and it is the right way to start with these three rates,” calling the move the right choice.

Officials say the new system is designed to ease economic pressure while managing fuel demand, without sparking public anger or repeating the unrest of the past.

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