Iran has rolled out a new gasoline pricing tier, marking its first major adjustment to fuel subsidies since the 2019 price hike that triggered nationwide protests.

Under the updated system, motorists will still receive 60 litres of petrol per month at the subsidised rate of 15,000 rials per litre, while the next 100 litres will remain priced at 30,000 rials. Fuel bought beyond this limit will now cost 50,000 rials per litre.

Although the new rate is higher, petrol in Iran remains among the cheapest in the world. The government says the move is aimed at reducing the heavy cost of fuel subsidies, which have grown more expensive due to inflation, a weakening currency, and international sanctions.

There were no reports of unrest as the policy took effect, with drivers calmly refuelling at stations in Tehran. Officials have indicated that fuel prices will be reviewed every three months, suggesting further changes could follow.