Iran raises gasoline prices to curb consumption

Iran is increasing gasoline prices for its heaviest users to reduce consumption and manage economic pressure. Karamat Veys-Karami, head of the National Iranian Oil Products Distribution Company, announced that the price for gasoline sold through emergency fuel cards will rise to 100,000 IRR (approximately 44.4 cents or 7 cents depending on exchange rate context) per liter.

This adjustment is part of a three-tier pricing system implemented in December. The government aims to reduce reliance on emergency fuel cards, which have seen usage drop from 43% to 26% since the scheme's introduction. To offset gasoline demand, officials are encouraging the use of compressed natural gas (CNG). Iran currently has 2,500 CNG stations and 4.3 million dual-fuel vehicles capable of utilizing the resource.

The price hike comes amid broader economic challenges, including the depreciation of the rial and increased economic pressure from the United States. The U.S. Treasury Department recently sanctioned 36 entities in the Iranian aviation sector to further restrict financial lifelines to the regime.