Iran has implemented its first gasoline price adjustment since 2019 with minimal public backlash, marking a moment of calm in one of the country’s most sensitive policy areas.
The government’s newly approved three-tier gasoline pricing scheme, whose most visible element is an increase in the free-market gasoline price to 50,000 rials (4 cents) per liter, came into force early Saturday and was executed smoothly nationwide.
According to field reports from the first hours of implementation on December 22, fuel stations operated normally, with no disruptions to the smart fuel card system, no technical failures, and—most notably—no panic buying or long queues. Officials from the National Iranian Oil Products Distribution Company confirmed that fuel supply and service across stations remained stable throughout the rollout.
Under the revised policy, gasoline is now sold at three price levels. The first two tiers remain unchanged. Private vehicle owners continue to receive 60 liters of subsidized gasoline per month at 15,000 rials (1.2 cents) per liter and an additional 100 liters at the second-tier price of 30,000 rials (2.4 cents), both accessed via personal fuel cards.
The key change applies to the third tier: gasoline purchased using station cards, previously priced at 30,000 rials (2.4 cents), has increased to 50,000 rials (4 cents) per liter.
A notable provision of the plan targets multi-car households. Subsidized two-tier gasoline will ultimately be limited to one vehicle per owner. Owners of multiple vehicles are required to declare one vehicle as eligible for subsidized fuel through a self-declaration system. While the platform is now active, authorities say enforcement will be phased in. Vehicle owners have one month to register; failure to do so will result in second and subsequent vehicles receiving gasoline only at the free-market price.
The policy also introduces a more sophisticated mechanism for ride-hailing vehicles. Internet-based taxis and delivery motorcycles will receive additional fuel credits—200 liters for gasoline cars, 95 liters for dual-fuel vehicles, and 40 liters for motorcycles.
Rather than providing extra fuel directly, the government will reimburse drivers for the price difference between the second and third tiers based on verified mileage data. If successfully implemented, this model could serve as a template for broader transport fuel reforms, including diesel distribution. Ride-hailing platforms have pledged not to raise fares.
Government vehicles, excluding ambulances, will also be subject to the 50,000-rial rate. Meanwhile, authorities confirmed that preparations are underway to introduce premium gasoline as a fourth pricing tier in the coming days.
Cautious Move
The cautious design of the reform reflects lessons learned from the November 2019 fuel price hike, which triggered protests after prices were raised abruptly and without prior communication. For six years, successive governments avoided touching gasoline policy despite mounting imbalances, rising imports, fuel smuggling, air pollution, and fiscal strain.
The new administration took a different approach, framing gasoline as a national issue and openly acknowledging past policy failures. Through sustained public communication and gradual implementation, the government sought to build social acceptance while avoiding an inflationary shock.
The decision to leave the first two price tiers untouched, combined with transparent messaging and a step-by-step rollout, appears to have paid off, allowing one of Iran’s most sensitive economic reforms to proceed smoothly.
