Iran increases gasoline price for its heaviest consumers as economy struggles
Summary
Iran has raised the price of gasoline for people who use more than 110 liters per month, doubling the cost for heavy users. This increase aims to manage high gasoline use and help families by reallocating the extra money, but it may also add to inflation during difficult economic times.Key Facts
- Iran increased the gasoline price for the heaviest users starting Tuesday.
- People using more than 110 liters (29 gallons) per month now pay 100,000 rials (about 7 cents) per liter, twice the price set in December.
- The price change affects about 15% of gasoline consumers.
- Iran’s daily gasoline consumption reached 145 million liters, while local production is 122 million liters, so the country imports the rest.
- Gasoline prices in Iran remain low compared to the world despite the increase.
- The country faces yearly inflation of about 67%, and the price hike could increase inflation further.
- Cheap gasoline has been a long-standing cultural expectation in Iran, with past price hikes causing protests and violence.
- The government plans to give the additional money made from higher prices to households.
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