Iran Doubles Gasoline Price For Heavy Users Amid Economic Strain
Iran has doubled gasoline prices for heavy users as part of an effort to manage economic strain and high domestic consumption. The government hopes the move will curb usage, though experts warn it may exacerbate existing inflation and social unrest.
Why it matters
Rising fuel costs in Iran are a sensitive economic and political issue that historically triggers protests and impacts the country's already high inflation rate.
Iran early Tuesday introduced a higher price for its heaviest users of gasoline, state media reported, in the latest economic pinch caused by months of war. It's the second such hike since December.Such gas price increases can be sensitive and contribute to inflation. An increase in 2019 sparked nationwide protests and a crackdown that reportedly killed over 300 people.Without specifically mentioning the war with the United States, the government's announcement cited the "current situation," adding that the extra money from the price increase will be given to households.Under the new system, people buying more than their quota of 110 liters (29 gallons) of gasoline a month now must pay 100,000 rials (about 7 cents) per liter, or twice as much as they have been paying since December.Iran still has some of the world's lowest gasoline prices, but the price increase adds to daily pressures for many of the country's more…
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