Petrol prices to double under Iran's war economy
Iran is raising the price of petrol for heavier users as the country's wartime economy comes under growing strain, with a widening fuel deficit exposing the limits of its ability to maintain subsidised supplies. The move risks adding to the pressure on households already facing the economic effects of the conflict , while reviving memories of the 2019 fuel-price protests that erupted into…
Iran is set to double the price of petrol for heavy users as the country's wartime economy grapples with a mounting fuel deficit and the strain of economic sanctions. The move, announced on Sunday night, comes as Iran faces a growing petrol shortage, with officials estimating a daily shortfall of 14-15 million litres. The new pricing structure will see motorists using over 110 litres of petrol per month pay 100,000 rials per litre, double the current top-tier price.
Earlier allocations of 60 litres and 50 litres will remain at 15,000 rials and 30,000 rials per litre, respectively. Similar to the 2019 fuel-price protests that sparked nationwide unrest, early reactions to this price hike include long queues at petrol stations in Tehran, Isfahan, and other cities. This comes as Iran's currency has hit a record low of 2.27 million rials per US dollar, further exacerbating the fuel crisis.
The government's spokeswoman, Fatemeh Mohajerani, stated that the price hike aims to address supply-demand imbalances caused by rising consumption, increased consumption, and the impact of war, sanctions, and a naval blockade on Iran's ability to import fuel. She assured that all revenue generated from the price increase will be spent on people's livelihoods.
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