Iran has raised petrol prices for motorists again as the government struggles to manage declining revenues and sustain a costly subsidy regime. The price of petrol will remain the same for the first 60 litres (16 gallons), state media reported, but there will be a higher price bracket for the next 50 litres (13 gallons). Prices will double from 50,000 riyals to 100,000 riyals ($0.07) per litre (0.3 gallons) for motorists who consume more than 110 litres (29 gallons) a month.
Iran has some of the lowest petrol prices in the world, but due to ongoing economic difficulties amid the war with the US, including punishing sanctions and a siege on Iranian ports by US forces, Iranian officials have for months considered adjusting fuel subsidies to make up for lost revenues. Of course, part of the responsibility for this high consumption does not lie with our people; it lies with our industry.” Iran has been consuming more oil than it produces domestically or match pre-war production or export levels. In a sign of the energy crisis, videos circulating on social media reportedly show long queues at petrol stations in Tehran.
It is the second time petrol prices have increased since December, with concerns about further increases prompting unrest. Huge antigovernment protests in 2019 started after anger over fuel price increases. Iranians are already feeling the impact of a downturn in economic activity, high inflation, and a drop in the value of the rial.
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