Tehran | September 8, 2026
Iran has doubled the price of petrol for consumers who use more than 110 litres a month, introducing a higher cost for heavy fuel users as the country faces record-low currency values, high inflation and a widening gap between petrol consumption and domestic production.
The revised rate took effect early Tuesday. Consumers who exceed the monthly quota will now pay 100,000 rials, or about 7 cents, per litre. The rate is applicable to purchases above 110 litres a month and follows an earlier petrol-price increase introduced in December.
The Iranian government said the additional revenue would be distributed to households. Its announcement referred to the “current situation” but did not specifically mention the war with the United States. Keramat Veis Karami, chief executive of Iran’s state oil distribution company, said the higher rate would affect about 15% of consumers, according to the official IRNA news agency.
The measure comes as Iran’s currency has weakened sharply and household purchasing power has declined. The US dollar was trading at 2.22 million rials on Monday. The country continues to have some of the world’s lowest petrol prices, but the increase for heavy users adds to pressure on households in a population of more than 90 million.
Iran is also dealing with a significant imbalance between petrol consumption and domestic production. Karami said the country consumed 145 million litres of petrol per day in August, compared with domestic production capacity of 122 million litres a day. The difference is covered through imports.
The government has presented the higher price as a measure intended to reduce consumption. Experts cited in the report linked high fuel use to ageing vehicles, difficulty obtaining spare parts and insufficient public transportation. These conditions can increase dependence on private vehicles while limiting the ability of households to respond to higher fuel prices by shifting to other transport options.
Petrol prices are closely connected to Iran’s wider cost of living. The country’s statistics centre, a government agency, has reported annual inflation of about 67%, and experts have warned that higher fuel prices could add to inflationary pressure. The new rate therefore affects not only fuel bills but also the broader costs associated with transport and household consumption.
Fuel-price increases have historically been politically sensitive in Iran. A rise in 2019 triggered nationwide protests followed by a crackdown that reportedly killed more than 300 people. Earlier, a petrol-price increase in 1964 led to mass demonstrations and a strike by taxi drivers, prompting the shah to deploy military vehicles to replace those of the striking drivers.
The latest change is the second petrol-price increase since December. The government’s stated next step is to distribute the additional revenue to households while applying the higher rate to consumers who cross the monthly threshold.
