An Iranian lawmaker has warned that the government’s new three-tier gasoline pricing system will drive up the cost of goods and services nationwide, saying the move was made without coordination with parliament or the public.
Mohsen Biglari, secretary of parliament’s Budget and Planning Committee, said lawmakers had not been informed in advance of the government’s plan to add a new 5,000-toman (4.4 cents per the free market rate) fuel tier for drivers refueling beyond their monthly quotas or without personal fuel cards.
“If people have to buy 5,000-toman gasoline after using their quota, this increase will definitely affect the prices of other goods and services,” Biglari told Rouydad24. “We’ve seen how such policies ripple through the economy before.”
Biglari said even members of parliament learned of the change from the media, despite President Masoud Pezeshkian’s earlier campaign pledge that no fuel price hike would occur “without coordination with the people.”
“Such a major decision should have been discussed with us as representatives of the people,” Biglari said. “While the move may not be illegal, it contradicts the president’s promise of transparency.”
Economic and political backdrop
The government’s new fuel pricing system, announced last week, introduces a third rate at 5,000 tomans per liter for drivers refueling without personal cards or beyond their quota, while keeping existing 1,500- and 3,000-toman rates. Officials say the plan aims to reduce subsidies and curb rising consumption.
The Pezeshkian administration faces mounting fiscal pressure as fuel demand exceeds domestic production, forcing costly imports. The government says the reform will encourage efficient use and deter smuggling.
Biglari cautioned that even limited fuel price hikes could heighten public frustration if introduced without transparency. The warning comes amid memories of the 2019 fuel price protests, which erupted after an overnight price increase.
“Decisions like this, if made without public dialogue or proper study, can lead to social discontent,” he said, urging the government to act “with coordination and careful review to avoid potential risks.”
