Iran raises petrol prices again as officials urge consumers to cut fuel use

Iran has raised petrol prices again, introducing a higher tariff for motorists who use more than 110 litres a month. The change comes as officials try to manage declining revenues and the cost of a subsidy system that has long kept fuel prices among the lowest in the world. State media said the first 60 litres a month will remain unchanged, while the next 50 litres will be charged at a higher rate.

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Under the new structure, the price for heavy users will double from 50,000 riyals to 100,000 riyals per litre. The measure was reported on 8 September and is the second petrol price increase since December. Mohammad Bagher Ghalibaf, the speaker of parliament, said earlier this month that Iran could manage with the amount of gasoline it produces if consumption is controlled, adding that part of the pressure comes from industry rather than households alone.

The move comes amid wider economic strain, including high inflation, a weaker rial and reduced economic activity. Officials have for months been weighing changes to fuel subsidies as they seek to offset lost revenues. Videos circulating on social media reportedly show long queues at petrol stations in Tehran, suggesting the latest pricing change is being felt quickly by motorists in the capital.

Fuel policy has been politically sensitive in Iran for years because of its direct effect on household budgets and transport costs. The country has some of the cheapest petrol in the world, but that has also made subsidy reform difficult. Previous attempts to raise fuel prices have triggered unrest, including nationwide protests in 2019 that began after anger over a fuel price increase.

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The latest adjustment also reflects a broader energy imbalance, with officials saying Iran is consuming more oil than it produces domestically or can match through pre-war production and export levels. That gap has increased pressure on the government to curb demand while protecting state finances. The pricing change is therefore both a fiscal measure and a signal of the strain on the country's fuel supply system.

What remains unclear is how far the new pricing tier will affect overall consumption and whether further changes are planned. It is also not yet clear whether the reported queues in Tehran are temporary or a sign of deeper supply concerns. For now, officials are urging restraint, while motorists face the prospect of higher costs if their monthly use rises above the new threshold.

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