Iran increases gasoline price for its heaviest consumers as economy struggles

Key Points:

• Iran has introduced a higher gasoline price for heavy users, doubling the cost for consumption beyond the 110-liter monthly quota to 100,000 rials (about 7 cents) per liter, marking the second increase since December amid ongoing economic pressures.
• The government plans to redistribute the additional revenue to households but faces challenges as gasoline price hikes historically trigger inflation and public unrest, with a 2019 increase sparking deadly nationwide protests.
• Iran's gasoline consumption hit a record 145 million liters per day in August, exceeding domestic production capacity, leading to imports and prompting price hikes aimed at curbing high consumption linked to aging vehicles and inadequate public transport.
• The price increase affects about 15% of consumers and comes amid a severe economic situation marked by a record-low currency value and an annual inflation rate of approximately 67%, intensifying daily financial strain for Iranians.
• Public reaction includes concerns over rising costs of living, with citizens fearing further price hikes and inflation impacts on essential goods like food, while security measures have been heightened at gas stations to enforce the new pricing.