Iran has started to implement a new price level for state-subsidized gasoline, marking the first price adjustment since 2019.
This step comes at a time when the country is experiencing currency devaluation and economic sanctions. Despite the changes, gasoline prices in Iran remain among the lowest in the world.
The last major price increase six years ago led to nationwide protests, resulting in a crackdown that killed more than 300 people.
Cheap gasoline has been considered a birthright in Iran for generations, which sparked massive protests dating back to 1964 when a price hike forced the Shah to deploy military vehicles in the streets to replace striking taxi drivers.
The revised system, implemented as of this Saturday, adds a third pricing tier to the country's long-term subsidy system. The new system allows drivers to continue receiving 60 liters (15 gallons) per month at a subsidized rate of 15,000 rials per liter, or about 1.25 cents. The next 100 liters (26 gallons) will remain priced at 30,000 rials per liter, or about 2.5 cents.
Any additional quantities purchased thereafter follow the new pricing system priced at 50,000 rials per liter, or about 4 cents. Despite the introduction of fuel quotas in 2007, it has not yet reduced the demand for very cheap gasoline.
