Iran is rolling out a tougher petrol pricing system, targeting motorists who consume more than 160 litres a month — a move driven by growing pressure to cut down its massive fuel subsidies and stabilise an economy already battered by international sanctions.
According to state media reports on Tuesday, the new price structure will take effect from December 6, the middle of the Iranian month of Azar. For years, Iran has maintained some of the world’s cheapest petrol, but rising fiscal stress is forcing the government to rethink its long-protected fuel policies.
Under the new system, the first two price tiers remain unchanged:
– The first 60 litres will still cost 15,000 rials per litre (about 1.3 cents).
– The next 100 litres stay at 30,000 rials per litre (2.6 cents).
But once a driver exceeds 160 litres, a new third tier kicks in at 50,000 rials (4.3 cents) per litre — more than triple the lowest subsidised rate.
President Masoud Pezeshkian recently acknowledged the inevitability of higher petrol prices, but cautioned that such decisions carry enormous social weight. “There is no doubt that petrol should be made more expensive,” he said last month. “But is it that easy to intervene in the price? We have to look at thousands of variables and plan and think of solutions.”
His hesitation is rooted in memory. Iran’s last petrol price hike in November 2019 triggered one of the most violent waves of unrest in the country’s recent history. Demonstrations erupted within hours, spreading across dozens of cities. Roads were blocked, petrol stations burned, police outposts were attacked, and shops were looted. For a week, authorities heavily restricted internet access to contain the fallout.
Today’s situation is no less delicate. Iran’s economy has been deeply weakened by sanctions from the United States and other Western nations, accusing Tehran of pursuing nuclear weapons — a charge Iran has repeatedly denied, insisting its programme is for peaceful energy development.
As the government revisits long-standing subsidies, many Iranians fear a repeat of past turmoil. For now, the new pricing model signals a gradual but firm push toward reducing the state’s financial burden, even as the nation braces for potential public reaction.