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Iran to raise fuel price for heavy users

NEWS

September 6, 2026 at 20:11 UTC

2 min read
Fuel pump nozzle at busy gas station illustrating higher petrol prices for heavy users in Iran

Key Points

  • 01Iran is increasing gasoline prices only for motorists using more than 110 litres a month
  • 02First and second fuel quotas up to 110 litres remain at current subsidized rates
  • 03The third-tier gasoline price is being set at 100,000 rials per litre
  • 04The pricing change takes effect from the morning of September 8, 2026

Targeted fuel price increase for heavy consumers

Iran is introducing a targeted increase in gasoline prices that will apply only to motorists who consume more than 110 litres of fuel per month. The move focuses on higher-usage drivers rather than altering prices for all motorists across the board. Authorities have set an effective date for the change from the morning of September 8, 2026, giving a clear timeline for the new structure to take hold.

Government spokeswoman Fatemeh Mohajerani outlined the measure, emphasizing that the adjustment is limited to the highest consumption tier. With this step, officials are modifying just one segment of the existing quota system while leaving the bulk of monthly subsidized fuel allocations unchanged.

Structure of Iran’s gasoline quota system

Under the quota framework described by officials, motorists can purchase up to 60 litres of gasoline each month at a price of 15,000 Iranian rials per litre. Beyond this initial amount, they are eligible for an additional 50 litres at a higher but still subsidized rate of 30,000 rials per litre. Together, these two quotas cover 110 litres of monthly consumption at regulated prices.

Mohajerani confirmed that these first and second quotas, and the prices attached to them, will not be affected by the upcoming change. This means that drivers whose monthly use stays within 110 litres will continue to pay the same per-litre rates they do today.

New pricing for the third fuel quota

The adjustment centers on the third quota, which applies to fuel purchases beyond the 110-litre monthly threshold. For this third tier, the government has set a new price of 100,000 rials per litre, which is also expressed as 10,000 tomans. This marks a clear distinction between the subsidized tiers and the higher-priced fuel for heavier users.

By leaving the first and second quotas unchanged while lifting the price on the third tier, the policy effectively differentiates between average and high fuel consumption. Motorists exceeding their 110-litre combined allocation will face the new, higher rate for each additional litre purchased once the policy takes effect in September 2026.

Key Takeaways

  • 01Iran is adjusting its fuel subsidy system by raising prices only for consumption above 110 litres per month, leaving lower usage levels unchanged.
  • 02The first 110 litres of monthly gasoline remain available at significantly lower, fixed prices through a two-tier quota system.
  • 03The newly set third-tier rate of 100,000 rials per litre will shape the cost structure for heavier fuel users from September 8, 2026 onward.

References

  1. https://kayhanlife.com/business/irans-government-to-raise-fuel-price-for-heavy-users/
  2. https://www.straitstimes.com/world/middle-east/iran-raises-price-of-petrol-as-us-applies-economic-pressure
  3. https://www.jpost.com/middle-east/iran-news/article-907752
  4. https://kayhanlife.com/business/irans-government-to-raise-fuel-price-for-heavy-users