Daijiworld Media Network - Tehran

Tehran, Dec 13: Iran on Saturday raised the price of its subsidised gasoline for most consumers, as the OPEC member seeks to rein in rising fuel consumption and curb smuggling without provoking public backlash.

Government spokesperson Fatemeh Mohajerani announced on state television that vehicles, barring ambulances, will now have to purchase fuel beyond a specified limit at a higher rate. Under the revised structure, consumers requiring more than 160 litres of petrol per month will pay 50,000 rials per litre, equivalent to about four US cents at the free-market rate.

Despite the hike, Iran continues to have some of the cheapest fuel prices globally. The move had been delayed for years amid fears of triggering unrest similar to the widespread protests of 2019, which erupted after fuel price increases and were later suppressed by the state.

Under the existing subsidy framework, drivers can still buy up to 60 litres of petrol at 15,000 rials per litre and an additional 100 litres at 30,000 rials per litre each month. The higher price applies only to consumption beyond this threshold.

Mohajerani said the decision was aimed at managing fuel demand and tackling rampant fuel smuggling, a persistent challenge for the country. She also clarified that fuel quotas for taxis would remain unchanged under the new pricing system.