Iran Doubles Gasoline Price Amid 66% Inflation

Iran doubled the price of third-tier gasoline to 100,000 rials per liter on September 8. The previous rate was 50,000 rials. This change applies to consumption beyond the monthly subsidized quota of 110 liters. Drivers can still buy 60 liters at 15,000 rials and 50 liters at 30,000 rials.

The move targets heavy consumers, which officials estimate at 15% of buyers. However, commercial drivers and ride-hailing operators face immediate cost increases. These groups pass higher expenses into fares and service fees. The result is a broader rise in prices for goods and transport across the economy.

Inflation data shows severe cost pressure

Consumer prices rose 87.9% year-over-year in July. Annual inflation reached 66% during that period. Food prices increased by 128%. Oils and fats saw a 258.2% jump in August. Households are cutting back on meat and staples as wages lose value.

Fuel shortage drives the pricing decision

Daily gasoline consumption averages 145 million liters. Production sits at 122 million liters per day. This 23-million-liter gap is attributed to aging vehicles and weak public transit. Raising prices aims to reduce demand but does not close the supply deficit. Security forces have been deployed at pumps following the 2019 protests.

GN auto markets/energy: gasoline prices highlights the structural imbalance. The policy treats the shortage as a demand-side issue. It ignores the lack of investment in refining capacity. The economic impact extends beyond the pump to entire supply chains.

Commercial drivers face a profit squeeze

A Tehran ride-hailing driver reported monthly costs of 300 million rials. His gross income is 650 million rials. Fuel, commissions, and maintenance consume a large share of earnings. Drivers cannot absorb the new price hike. Passengers lack the budget for higher fares. This creates a stalemate in the transport sector.