Iran is set to raise its gasoline prices for heavier consumers starting September 8, with the third-tier quota doubling to 10,000 tomans (approximately $0.045 to $0.057, depending on the source) per liter. Government spokeswoman Fatemeh Mohajerani announced that the first two tiers, which cover the initial 110 liters per month, will remain unchanged at 1,500 tomans for the first 60 liters and 3,000 tomans for the next 50 liters. This decision comes as the US intensifies sanctions on Iran, with US Treasury Secretary Scott Bessent outlining plans for "economic asphyxiation" late last month.
The price hike is occurring amid significant economic strain in Iran, including high inflation, a rapidly weakening currency (trading at over 2.2 million rials to the US dollar on the black market), and rising costs for basic goods. The Iranian government justifies the increase as a measure to balance supply and demand and bolster "national resilience," particularly given a daily gasoline deficit of 14 million to 15 million liters. All additional revenue generated from the price increase is reportedly earmarked for supporting household livelihoods, although the specific distribution method has not been detailed.
The move is politically sensitive, as Iran has historically heavily subsidized fuel. A previous sudden increase in November 2019 led to nationwide protests and a deadly crackdown. Lawmakers like Hossein Samsami of Parliament's Economic Commission have warned that raising gasoline prices under current conditions could be akin to a "spark in a powder keg." The average monthly income in Iran is estimated to be below $200, with housing consuming an increasing share of earnings, exacerbating public anger over the cost of living.
