Iran Raises Gasoline Prices for the First Time Since 2019 Protests

SadaNews Economy - Iran has begun implementing a new level of state-subsidized gasoline prices, marking the first price adjustment since 2019. This move comes as the country grapples with a decline in currency value and economic sanctions.

Despite the changes, gasoline prices in Iran remain among the lowest in the world, according to the Associated Press.

The last significant price hike six years ago triggered nationwide protests, leading to a crackdown that resulted in over 300 deaths.

For generations, cheap gasoline has been viewed as an entitlement in Iran, and massive demonstrations erupted in 1964 when rising prices forced the Shah to deploy military vehicles in the streets to replace striking taxi drivers.

The adjusted system, implemented as of today, Saturday, introduces a third pricing level to the country’s long-standing subsidy system. The new system allows drivers to continue receiving 60 liters (15 gallons) per month at a subsidized price of 15,000 rials per liter (1.25 US cents), with the next 100 liters (26 gallons) priced at 30,000 rials per liter (2.5 US cents), and any additional quantities purchased thereafter falling under the new pricing scheme of 50,000 rials per liter (about 4 US cents).

Iran imposed fuel quotas in 2007, but this has not yet alleviated the demand for extremely cheap gasoline.