Iran imposes steep fuel price hikes on heavy monthly users

Fuel costs are climbing again across Iran. The government now asks citizens to use less gasoline. New pricing targets anyone who burns more than 110 litres per month. That usage level triggers a price jump to 100,000 riyals for every litre. State media confirmed the first 60 litres stay at 50,000 riyals. The next 50 litres face that doubled rate of 100,000 riyals per unit. This shift follows months of planning to fix revenue losses from US sanctions and a blockade on Iranian ports.

Mohammad Bagher Ghalibaf addressed the nation on TV recently. He told people they must save gasoline if production is to last. "We can manage with what we produce," he said. He also noted that high consumption partly stems from local industry needs, not just driver habits. Iran relies on oil sales for roughly 90 percent of its national budget. Export volumes have fallen sharply since December. Output dropped from about 4 million barrels per day to just over 2.2 million barrels per day in August. The nation now consumes more fuel than it makes at home.

Videos posted online show long lines at pumps in Tehran. This marks the second price hike since last December. Angry crowds gathered after similar hikes earlier this year. Those protests erupted in late December and rolled into early January 2023. Iranians feel the strain of a slowing economy today. Inflation remains high, and the rial has lost significant value against foreign currencies. The government fears more unrest if costs rise further without relief for ordinary families.