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🇵🇾 Paraguay /Economy & Trade

Iran doubles price of unsubsidized gasoline amid US blockade

From ABC Color · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Official statement New plan
  • Iran will raise the price of gasoline above the subsidized monthly allowance from 50,000 to 100,000 rials per liter, the government said.
  • The increase responds to a reported daily gasoline shortfall of 10 million liters and comes as sanctions, war and a US naval blockade hinder imports.
  • The government said the subsidized price for up to 110 liters per vehicle each month would not change, but fuel prices remain politically sensitive after nationwide protests in 2019.

Iran is doubling the price of gasoline for drivers who exceed the country’s subsidized fuel allowances, as a daily shortage of 10 million liters collides with tougher sanctions and a US naval blockade.

Government spokesperson Fatemeh Mohajerani said the new price would take effect early Tuesday. Unsubsidized gasoline will cost 100,000 rials, or $0.04, per liter. The government said the subsidized price would remain unchanged for the 110 liters allocated monthly to each vehicle.

Iran’s rationing system has three price levels. The first 60 liters cost 15,000 rials per liter, while the next 50 liters cost 30,000 rials. Any consumption beyond that threshold had cost 50,000 rials per liter since a third price tier was introduced last December. That rate will now double.

The increase touches a highly sensitive issue in Iran. A gasoline price rise in 2019 triggered protests across the country that caused more than 300 deaths. Iran has among the world’s lowest gasoline prices and faces a difficult subsidy choice despite holding some of the largest global gas and oil reserves. The country still needs to import part of the gasoline it consumes.

Deputy Oil Minister Mohamad Sadegh Azimifar said Iran had recorded a daily shortfall of 10 million liters for the past five months, requiring imports to cover the gap. He said the war with the United States and Israel, which began on February 28, and the US naval blockade had made those imports more difficult.

There will be a price adjustment from early Tuesday: the price of unsubsidized gasoline will increase to 100,000 rials ($0.04) per liter.

· Fatemeh MohajeraniThe government spokesperson announced the new price for gasoline consumed above the subsidized allowance.
About this summary

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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