Iran begins trial vending of premium gasoline at market price

Iran has rolled out a test vending of imported premium at market price in Tehran to address the country's domestic petroleum consumption deficit.

The middle eastern country is offering the high-octane fuel at a price much higher than country's newly announced three-tier subsidised pricing system.

Petroleum Minister Mohsen Paknejad said on Thursday that private companies will offer super gasoline outside petrol stations on mobile fuel trucks, selling it at market price exceeding the country's cut-rate prices.

“The pilot sale intends to assess consumers’ demand and their response to price,” Paknejad said while speaking on state TV.

The price of imported super gasoline is 800,000 rials per liter, equivalent to US dollars 0.59 at the market exchange rate of 1,350,000 rials per dollar on Thursday.

According to the Minister, the initial offering was implemented through five fuel vehicles in capital Tehran on a pilot basis and up to 17 firms were granted permits to import super gasoline.

Their entry to the market depends on the outcome of this trial phase and consumer acceptance of the final price, he added.

Referring to purchase price and logistic issues as the factors determining the cost of imported premium fuel, he said the new price will be strictly monitored by the Ministry of Petroleum to prevent profiteering.

Earlier in the month, Iran introduced a new three-tier pricing system for subsidised gasoline, marking the country’s first fuel price adjustment since 2019.

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Under the newly revised scheme, motorists can purchase up to 60 liters per month at the lowest subsidized rate of 15,000 rials. An additional 100 liters is available at a higher price at 30,000. Any refueling beyond 160 liters is charged at a new top rate of 50,000 rials per liter -- about 4 cents.

Despite the changes, gasoline prices in Iran remain among the lowest in the world.

This latest move is aimed at increasing fuel prices incrementally and curb rising consumption simultaneously amid ongoing sanctions which have hit income of the people and government’s revenues.

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