Iran Doubles Gasoline Prices for Heavy Users Amid War‑Driven Shortages and Inflation

Starting Tuesday, September 8, the Iranian government announced that motorists who go beyond their allotted 110 litres of gasoline per month will see the price double – from 50,000 rials a litre to 100,000 rials. The first 110 litres remain under the heavily subsidised regime: 60 litres at 15,000 rials each and a further 50 litres at 30,000 rials.

Fatemeh Mohajerani, a government spokesperson, framed the hike as a response to Iran’s “current situation” – a blunt way of pointing to the perfect storm of war, U.S. sanctions and a runaway inflation rate that now hovers around 67 %. The extra revenue, she hinted, will be earmarked for household relief, though the exact mechanism is still vague.

It’s not just a fiscal tweak. Iran’s daily gasoline consumption hit a record 145 million litres in August, while the nation’s refineries can only crank out roughly 122 million litres a day. That leaves a yawning gap of about 14‑15 million litres that the country must import, a dependence that has deepened long before the current conflict.

Experts like Esmail Saqqab Esfahani, who runs the Energy Optimization Organization, say the daily deficit is now a chronic 14‑15 million litres. The problem is multifaceted: ageing cars, a chronic shortage of spare parts and a public‑transport system that can’t keep up, all compounded by the economic squeeze of sanctions and war.

Only about 15 percent of drivers are expected to feel the brunt of the new price – those who regularly exceed the quota. Yet even a modest increase can ripple through the economy, nudging transport costs upward and adding fuel to the already blistering inflationary fire.

Fuel pricing is a tinderbox in Iran. Back in November 2019, a sharp rise in gasoline costs ignited nationwide protests that quickly morphed into broader anti‑government unrest, ending with a harsh crackdown and a tragic death toll. Lawmakers like Hossein Samsami have warned that raising prices now could be “a spark in a powder keg.” Even the parliament speaker, Mohammad Bagher Ghalibaf, fears that Iran’s adversaries might exploit any public discontent over the cost of living.

President Masoud Pezeshkian hinted at the increase in late August, but the exact rollout date was only confirmed now. The government now walks a tightrope: it must curb excessive fuel consumption to ease the supply squeeze, yet it cannot afford to stoke more public anger amid an already fragile economic climate.

For ordinary Iranians, the reality is stark. With the rial slipping to historic lows and food and other essentials already pricier, an extra 50,000 rials per litre could make a tangible dent in household budgets. How the promised “household support” will be delivered remains to be seen.