What happened
Iran's government spokesperson, Mohajerani, announced on Sunday that gasoline prices will increase for users consuming more than 110 liters per month, effective from next Tuesday.
The price adjustment is aimed at addressing challenges arising from the war and severe U.S. economic sanctions.
The first and second quota prices, including the 110-liter tier, remain unchanged, but the third tier's price will rise to 100,000 Iranian rials per liter, approximately 4 U.S. cents at the free market exchange rate.
Why it matters
Iran's gasoline prices are currently among the lowest globally, and this targeted increase affects only high-volume consumers, potentially mitigating public backlash.
The move comes after previous discussions were postponed due to fears of triggering new protests, as seen in 2019 when similar issues led to widespread demonstrations.
The adjustment reflects the government's need to manage economic pressures from sanctions while attempting to avoid social unrest.
Key facts
The price hike applies to monthly gasoline usage exceeding 110 liters.
The third-tier price will be 100,000 Iranian rials per liter, about 4 U.S. cents.
Other drivers can still purchase up to 60 liters at 15,000 rials per liter and an additional 50 liters at 30,000 rials per liter.
What to watch next
Monitor public reaction to the price increase, especially among high-volume users, to see if protests emerge.
Observe whether the government adjusts other fuel subsidies or prices in response to economic conditions.
Watch for potential impacts on inflation and daily life in Iran as the new prices take effect.