Iran doubles gasoline price for heavy users amid war and inflation strain

Tehran,UPDATED: Sep 8, 2026 02:28 IST

Iran on Tuesday introduced a higher gasoline price for its heaviest users, adding to the economic strain caused by months of war. State media said it is the second such increase since December, in a move that could deepen pressure on households in a country already dealing with high inflation and a weakening currency.

The government did not specifically mention the war with the United States, but said the decision was taken because of the "current situation" and that the additional money raised from the increase would be given to households. Gasoline price rises are politically sensitive in Iran. A 2019 increase triggered nationwide protests and a crackdown that reportedly killed more than 300 people.

Under the new system, people who buy more than their monthly quota of 110 litres of gasoline will now pay 100,000 rials, or about 7 cents, per litre. That is twice the rate they had been paying since December. Iran still has some of the lowest gasoline prices in the world, but the latest increase adds to the daily pressures faced by many of its more than 90 million people. The currency has fallen to record lows and purchasing power has weakened. On Monday, the US dollar was trading at 2.22 million rials.

Keramat Veis Karami, chief executive of the state oil distribution company, said on Monday that the new gasoline rate would affect 15 per cent of consumers, according to the official IRNA news agency. He said consumption reached a record 145 million litres a day in August, while domestic production capacity stood at 122 million litres a day, with the rest imported. Experts say higher prices could help reduce heavy consumption, which they blame on ageing cars, spare parts issues and inadequate public transport. But they also say costlier gasoline could push inflation higher in a country where the annual inflation rate is already about 67 per cent, according to the national statistics centre.

Cheap gasoline has long been seen in Iran as a birthright, and price increases have triggered public anger for decades. Demonstrations were also seen in 1964, when a fuel price rise forced the shah to put military vehicles on the streets to replace those of striking taxi drivers. The latest increase, announced amid war and growing economic stress, underlines the pressure on both the government and consumers.

With PTI Inputs

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