Iran has announced a new petrol pricing structure, raising costs for motorists who consume more than 160 litres per month, state media reported. The move is part of broader efforts to reduce fuel subsidies in a country where petrol remains among the cheapest globally.

Starting 6 December, a third price tier will be applied: the first 60 litres per month will remain at 15,000 rials (1.3 US cents) per litre, and the next 100 litres will continue at 30,000 rials (2.6 US cents). Consumption beyond 160 litres will now cost 50,000 rials (4.3 US cents) per litre.

President Masoud Pezeshkian emphasized the need to adjust petrol prices but warned that careful planning is required due to the many economic variables involved. Iran has faced social unrest over fuel price hikes in the past; in November 2019, nationwide protests erupted following a sharp increase, leading to violent clashes, property damage, and a temporary internet blackout.

The latest price adjustment comes as Iran’s economy struggles under extensive international sanctions targeting its energy sector and broader economic activities. Authorities argue the measures are necessary to balance domestic fuel consumption and manage the nation’s subsidy burden.

Analysts suggest that monitoring public reaction will be crucial, given the historical sensitivity to fuel price changes in Iran.