Iran will raise the price of gasoline for motorists who use more than 110 litres a month, starting Tuesday, government spokesperson Fatemeh Mohajerani said on Sunday.
The move is aimed at tackling rising fuel demand and economic pressures caused by the war and severe U.S. sanctions, while preserving existing subsidies for most motorists.
Under the new system, the first 110 litres of gasoline will remain at current subsidized prices, with 60 litres available at 15,000 Iranian rials per litre and another 50 litres at 30,000 rials.
Motorists exceeding the 110-litre monthly limit will pay 100,000 rials per litre for fuel under the third quota, equivalent to about 4 U.S. cents at the free-market exchange rate.
The increase comes as Iran seeks to curb gasoline consumption and address pressures on its heavily subsidized fuel system.
Iran has some of the world’s cheapest gasoline prices, contributing to high domestic demand and putting additional pressure on the country’s fuel resources.
The government had previously discussed a broader gasoline price increase but delayed the move over concerns it could trigger public unrest.
Iran faced widespread protests in 2019 after authorities sharply increased gasoline prices, making fuel pricing a politically sensitive issue.
In December, the government partially increased subsidized gasoline prices for most consumers as the OPEC member sought to slow rapidly rising fuel demand.
The latest measure targets only heavy fuel users, with the government seeking to reduce consumption while limiting the impact on ordinary motorists.
The policy highlights the challenge facing Iran as it balances economic pressures, fuel demand and the political risks of raising prices during a period of heightened tensions.