Iran implemented a higher gasoline price for its heaviest consumers on Tuesday, marking the second such increase since December and adding to economic pressures facing the country. The price hike affects consumers who purchase more than 110 liters (29 gallons) of gasoline monthly, costing them 100,000 rials (approximately 7 cents) per liter – double the previous price. The government stated the additional revenue will be distributed to households, but did not directly address the ongoing economic challenges or recent war tensions.
According to state media, the new pricing scheme will impact 15% of consumers. Demand reached a record high of 145 million liters (38 million gallons) per day in August, exceeding domestic production capacity of 122 million liters, necessitating imports. Keramat Veis Karami, CEO of the state oil distribution company, reported the increased rate. Experts suggest the price increase is intended to curb high consumption, driven by aging vehicles and limited public transportation.
However, economists predict the price hike will contribute to Iran’s already high inflation rate, currently around 67%, according to the country’s statistics center. Cheap gasoline has historically been considered a right by many Iranians, with previous price increases triggering widespread protests, including a crackdown in 2019 that reportedly resulted in over 300 deaths. An hour after implementation, the Associated Press reported that two of eight visited gas stations were closed to regulate pricing, while the remaining six had a dozen cars in line each, with a visible security presence.
Tehran resident Asghar Rahimi expressed skepticism that the price increase would meaningfully address poverty or unemployment, anticipating further hikes. Ali Salari, another resident, feared the increase would lead to higher prices for essential goods like bread and meat, a pattern observed with previous gasoline price manipulations. On Monday, the U.S. dollar was trading at 2.22 million rials, reflecting the continued decline of the Iranian currency.
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