Tehran, Iran – Starting today, Saturday, December 12, the Iranian government began implementing a new three-tiered gasoline pricing system. This resulted in fuel prices at filling stations rising from 3,000 tomans to 5,000 tomans for the highest tier.
New pricing details
Fereydoun Yasami, CEO of the National Iranian Oil Products Distribution Company in Tehran, announced the new pricing structure.
Under this system, gasoline will be sold at three different prices: 1,500 tomans, 3,000 tomans, and 5,000 tomans.
Fatemeh Mohajerani, the Iranian government spokesperson, explained that 80% of the population’s needs will be met through the subsidized ration. Specifically, 60 liters will be allocated at 1,500 tomans, and 100 liters at 3,000 tomans per month.
The government also announced the cancellation of the quota allocated to government vehicles, with the exception of ambulances, imported vehicles, and vehicles bearing free zone license plates.
Combating imports and achieving self-reliance
These government changes are aimed at managing fuel consumption and reducing the growing dependence on imports.
Government statistics indicate that Iran currently allocates approximately six billion dollars annually to gasoline imports. This is equivalent to 1.5 times the country’s total annual cash subsidies.
Referring to the economic necessity of this decision, Mohajerani said last week, “In 2019 and 2020, we exported products worth more than $6 billion. But now we are importing gasoline worth more than $4 billion. This figure is still increasing. Clearly, the government must take action on this matter.”
The Cabinet had previously decided to implement a plan to increase gasoline prices starting from the second half of December.
