Alitoday

TEHRAN : Iran's government has announced a tiered increase in gasoline prices, targeting consumers who use more than 110 litres per month, as the country grapples with severe economic pressures from ongoing war and intensified U.S. sanctions. Government spokeswoman Fatemeh Mohajerani stated on September 6 that the price for the third-tier quota would rise to 100,000 rials per litre, approximately 4 U.S. cents, while the first and second-tier quotas would remain unchanged. The new pricing takes effect on September 8. The price hike applies a three-tier system. Drivers can purchase up to 60 litres per month at 15,000 rials per litre, and an additional 50 litres at 30,000 rials per litre. Consumption beyond 110 litres triggers the substantially higher rate of 100,000 rials per litre, more than triple the previous second-tier price . The government has framed the adjustment as an unavoidable measure to address the nation's fiscal crisis and curb surging domestic fuel consumption . The decision comes against a backdrop of acute fuel shortages. In late August, fears of supply disruptions caused long lines at petrol stations across Tehran, with drivers waiting even through the night. Iran, despite being a major crude exporter, has long relied on imports to meet domestic gasoline demand. These imports have been severely curtailed by a U.S. naval blockade imposed on July 14 and by damage to domestic refining capacity from U.S. and Israeli strikes since February. The government has admitted to a daily gasoline deficit of approximately 15 million litres against demand of 135 million litres . The move reflects the intensifying economic strain on the Islamic Republic. U.S. President Donald Trump announced on August 20 what his administration termed a 'devastating economic action' and an 'unprecedented economic isolation' of Iran, with Treasury Secretary Scott Bessent expanding secondary sanctions on Iranian trade partners . The International Monetary Fund projected that Iran's real GDP would contract by 5.4 percent in 2026, with consumer price inflation reaching 68.9 percent . Independent estimates suggest annual inflation is nearing 90 percent, with food inflation at approximately 130 percent . Analysts and officials have noted the government's sensitivity to the risk of public unrest. A similar nationwide price hike in November 2019 triggered mass protests across more than 100 cities, which were violently suppressed, resulting in several hundred deaths. The current tiered approach aims to shield ordinary consumers while targeting heavy users, an attempt to avoid repeating the 2019 unrest. President Masoud Pezeshkian has publicly acknowledged the nation's financial difficulties, stating that state resources are depleted and that a price adjustment is necessary under war conditions . The gasoline price adjustment is one part of a broader economic crisis reshaping daily life in Iran. The rial has hit record lows of 2 million to the U.S. dollar, and the purchasing power of ordinary Iranians has fallen drastically. Reports indicate that basic foodstuffs like chicken have become unaffordable for many families, with the cost of cooking oil rising fivefold . U.S. and Iranian forces have engaged in direct military strikes in recent days, further escalating tensions. On September 1, U.S. Central Command announced strikes on Islamic Revolutionary Guard Corps (IRGC) targets in southern Iran, including a site in Sirik County where a wedding ceremony was reportedly struck, causing dozens of casualties. President Donald Trump stated on September 2 that the U.S. is 'ready' to strike Iran again. The IRGC has retaliated with missile and drone attacks on U.S. assets in the region and has vowed to respond with what it called 'crushing and shattering' blows .

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