In a significant shift in Iran’s fuel pricing framework, the Cabinet has approved a new regulation that raises the price of gasoline purchased with station-issued emergency cards to 5 cents per liter, effective December 5.
This “third-tier” rate is set at 10 percent of the refinery purchase price of gasoline and marks the latest step in the government’s multi-tiered fuel pricing strategy aimed at curbing consumption and better managing subsidies.
Under the updated structure, the first-tier subsidized gasoline rate remains 1.5 cents per liter for monthly quota allocations, while the second-tier rate continues at 3 cents for non-quota consumption. However, individuals owning more than one vehicle will now receive subsidized quotas only for a single car; all additional vehicles will be subject to the new 5 cents.
The Cabinet has also assigned the Oil Ministry to announce the third-tier rate on a seasonal basis, allowing adjustments in line with changes in supply, demand, and global energy dynamics.
According to the new directive, several categories of vehicles will no longer receive the 1.5- and 3 cents quotas. These include cars in free trade zones, imported foreign vehicles, and newly registered domestic vehicles. “Newly registered” refers strictly to brand-new vehicles leaving the factory with a fresh license plate; cars that receive a previous owner’s plate will continue to qualify for the lower-tier rates.
Beginning mid-December, cars in free trade zones will be required to refuel entirely at the 5 cents rate. In addition, starting February, the second-tier quota for CNG-hybrid vehicles will be reduced by half—an adjustment expected to influence fuel consumption patterns among dual-fuel vehicle owners.
This revamped pricing structure comes as Iran continues to confront rising gasoline consumption, heavy subsidy burdens and increasing pressure to rationalize domestic energy policies.
The seasonal adjustment mechanism suggests that further price modifications may be introduced in the coming months as the government seeks to balance budgetary constraints with energy demand management.
