Iran Doubles Gasoline Price for Heavy Users Amid War‑Driven Economic Strain

From Tuesday, September 8, Iran’s government announced that any motorist who purchases more than the allotted 110 litres of gasoline in a month will see the price jump from 50,000 rials to 100,000 rials per litre. The first 60 litres stay at a heavily‑subsidised 15,000 rials, and the next 50 litres at 30,000 rials.

Spokesperson Fatemeh Mohajerani said the move reflects the country’s “current situation” – a mix of fuel shortages, soaring inflation and the heavy‑handed impact of the ongoing war and U.S. sanctions. She added that the extra revenue is earmarked for supporting households, though she didn’t spell out the mechanics.

According to Keramat Veis Karami, chief executive of the state oil distribution firm, roughly 15 % of Iranian drivers will feel the pinch. The country is already grappling with a daily gasoline deficit of about 14‑15 million litres; consumption hit a record 145 million litres in August while domestic refining capacity hovers around 122 million litres.

Experts point to a confluence of factors – aging cars, scarce spare parts, and a weak public‑transport network – that have driven demand up long before the conflict began. The war and sanctions have merely tightened an already frayed fuel system.

Higher prices are meant to blunt demand, but they could also stoke inflation further. Iran’s annual inflation is hovering near 67 %, and the rial has sunk to historic lows, eroding purchasing power for ordinary families.

Fuel pricing is a tinder‑box in Iran. A sharp hike in November 2019 sparked nationwide protests that spiralled into a broader anti‑government uprising, ending with a brutal crackdown that claimed hundreds of lives. Lawmakers, including MP Hossein Samsami, warn that another increase could be “a spark in a powder keg,” while Parliament Speaker Mohammad Bagher Ghalibaf cautions that Iran’s adversaries might exploit public discontent.

President Masoud Pezeshkian signalled the latest rise in late August but delayed announcing its exact start date. Now the policy is in force, and Tehran faces the delicate task of reining in fuel use without igniting further unrest over the cost of living.