Iran’s government said the real cost of importing gasoline has climbed to 700,000 rials per liter (about $0.62), far above the heavily subsidized pump prices that remain unchanged as policymakers debate fuel-pricing reform amid rising import bills and fears of public backlash.
Government spokesperson Fatemeh Mohajerani said on Tuesday that fuel quotas will stay in place for now, with monthly allocations of 60 liters at 15,000 rials ($0.013) and 100 liters at 30,000 rials ($0.027) continuing as before.
But she said Iran is being forced to spend $6 billion on gasoline imports this year as consumption soars past domestic output.
“It is natural that when foreign currency that should be used for other priorities is instead spent on gasoline – and some of this gasoline is smuggled – the government is obliged to act,” she said.
Mohajerani added that ministers must protect both the public’s livelihood and the country’s health and safety.
She said the government is preparing “serious programs” to curb fuel smuggling and added that the president has ordered automakers to expand production of low-consumption vehicles. “He made it clear they are required to manufacture more fuel-efficient cars,” she said.
Mohajerani also said that officials have examined the inflationary impact of potential adjustments but stressed that no final decision has been made on introducing a third pricing tier, one of several fuel-reform scenarios under discussion.
Her comments come as President Masoud Pezeshkian and senior lawmakers warn that the country cannot maintain ultra-cheap fuel indefinitely. Energy officials say domestic consumption has surged well beyond refining capacity, forcing costly imports and widening the subsidy gap.
Iran’s last major gasoline price hike in 2019 triggered nationwide protests in which at least 1,500 people were killed, according to rights groups and Reuters reporting at the time. The government says any future change will be gradual and tied to broader energy-sector reforms to avoid a repeat of that unrest.
New prices appear in Iran Energy Exchange
A few hours after Mohajerani’s press conference, new signs emerged that Iran is edging toward the higher fuel pricing.
The Iran Energy Exchange announced it will begin offering premium gasoline as of early December with a base price of 658,000 rials per liter (about 58 US cents) and a final settlement price of roughly 750,000 rials (around 67 cents) once additional costs are included.
The notice – the first such listing for premium fuel – immediately drew attention because the exchange price is more than ten times the current subsidized pump rate, adding to expectations that Tehran is preparing the ground for broader fuel-price reform.
