World
Iran Doubles Petrol Prices for High Consumption Amid Economic Strain
Iran has once again increased petrol prices as its government grapples with falling revenues and the burden of maintaining a costly fuel subsidy system. According to state media, the price of petrol will stay unchanged for the first 110 litres (29 gallons) consumed monthly. However, for consumption beyond that threshold, prices will double from 50,000 rials to 100,000 rials per litre. Despite the increase, Iran continues to have some of the lowest fuel prices in the world. The adjustment comes as the country faces mounting economic pressure linked to its conflict with the United States, including strict sanctions and a blockade of Iranian ports by US forces. Officials have spent months weighing changes to fuel subsidies in an effort to offset lost income. Mohammad Bagher Ghalibaf, speaker of Iran’s parliament, addressed the issue in a televised speech earlier this month, saying, “If we consume it properly, we can manage with the amount of gasoline we produce in the country. What is clear is that we need to save gasoline in our consumption. Of course, part of the responsibility for this high consumption does not lie with our people; it lies with our industry.” Iran has reportedly been consuming more oil than it produces, falling short of pre-war production and export levels. Videos circulating on social media have shown long lines at petrol stations in Tehran, reflecting the country’s deepening energy crisis. This marks the second petrol price hike since December, and fears of further increases have raised concerns about potential unrest. Notably, major antigovernment protests in 2019 were triggered by a similar rise in fuel prices. The latest increase adds to the economic strain already faced by Iranians, who are contending with a broader economic slowdown, high inflation, and a weakening national currency.