Iran Faces Fuel Price Hike Amid Economic Struggles

Iran's government has once again raised petrol prices, a move that highlights the country's ongoing economic turmoil and reliance on costly fuel subsidies. The latest increase is part of broader efforts to address declining revenues exacerbated by international sanctions and internal challenges.

As reported by state media, the price of petrol will remain unchanged for the first 60 litres; however, consumers will face a new price of 30,000 rials for the next 50 litres. For those exceeding this amount, the price will double from 50,000 rials to 100,000 rials (approximately $0.07) per litre. Despite having some of the lowest petrol prices globally, the Iranian government is grappling with the need to adjust these subsidies to offset significant revenue losses.

Mohammad Bagher Ghalibaf, the speaker of the Iranian parliament, emphasized the importance of responsible fuel consumption in a recent TV address, stating, "If we consume it properly, we can manage with the amount of gasoline we produce in the country." He acknowledged that high consumption levels are partly due to industry practices rather than solely the public's behavior. The rising prices have sparked concerns about potential unrest, reminiscent of the massive protests that erupted in 2019 following similar fuel price hikes. As economic conditions worsen, including soaring inflation and a declining rial, many Iranians are already feeling the strain.

Source: www.aljazeera.com