Iran International
Fuel shortages and tighter rationing are pushing drivers across Iran into a growing gasoline black market, with citizens describing long lines at gas stations and sharply inflated prices in messages sent to Iran International.
The accounts describe growing frustration over restricted access to subsidized gasoline and arbitrary limits imposed by operators, leaving many motorists dependent on costly unofficial sales.
“One day there’s quota left on your card, the next day it says your quota is finished,” one citizen said. “They even steal the few drops of gasoline they give people.”
Iran uses a subsidized fuel quota system controlled through electronic fuel cards. Every private vehicle receives a monthly gasoline allocation at discounted prices, while extra consumption is charged at higher rates.
Under Iran’s latest pricing system introduced in late 2025, the first 60 liters of gasoline each month cost 15,000 rials per liter (about $0.008), the next 100 liters cost 30,000 rials ($0.017), and any amount above 160 liters costs 50,000 rials ($0.028).
Despite heavy fuel subsidies, Iran’s minimum monthly wage is now worth less than $90 because of inflation and the sharp decline of the rial.
Another driver said he could not use his personal fuel card on Wednesday because his monthly allocation had already run out. The station operator, he said, agreed to provide a fuel card only if payment was handed directly to him, and even then limited sales to 15 liters at 70,000 rials ($0.038) per liter.
President Masoud Pezeshkian said in late April that the country faced “some shortages” in sectors including energy and fuel.
On May 9, Esmail Saghab Esfahani, vice president and head of Iran’s Strategic Energy Policy and Management Organization, said damage during the war had affected parts of the country’s gas and fuel infrastructure and disrupted some gasoline production capacity.
He said Iran had “no choice but to conserve” fuel consumption for at least the next 18 to 24 months.
But Oil Minister Mohsen Paknejad said on April 29 there were no concerns over fuel supply or distribution.
Black market prices rise
A resident of Bandar Abbas in southern Iran said drivers often wait more than an hour at gas stations, even with personal fuel cards, while gasoline is “widely available” on the black market at 150,000 rials, about $0.08, per liter.
In Zahedan, in southeastern Iran, one resident said gasoline shortages and tighter controls had accelerated illegal fuel sales.
“Everything has been left without oversight,” the resident said. “Sometimes 20 liters of gasoline is sold on the street for 10 million rials ($5.5).”
One driver from Isfahan said operators demanded between 1 million rials ($0.55) and 4 million rials ($2.22) to provide access to only 15 liters.
Citizens also described growing congestion at gas stations nationwide, with drivers saying some stations on major routes had limited purchases to 15 liters.
A resident of Sistan and Baluchestan said 70 liters of gasoline now costs around 50 million rials, about $28, while many villagers must drive hundreds of kilometers to reach hospitals or provincial centers.
For many Iranians, the shortages have become less a matter of conservation than another daily pressure in an increasingly strained economy.
“I worked at a petrochemical company and got fired. Since we can no longer afford rent, my wife, two children and I have moved back into my parents’ house,” one citizen told Iran International.
Another, a woman supporting her household alone, said she was forced to share her home after losing her job at a restaurant.
“I am the head of my household and after losing my job at a restaurant, I had no choice but to get a roommate to reduce rent and living costs while raising my teenage child,” she told Iran International.
Shargh newspaper reported on Thursday that more tenants in Tehran and other large cities are turning to shared housing, returning to parents’ homes or leaving the capital altogether as rent and living costs climb.
The newspaper cited residents who said they were searching for roommates for the first time after years of living independently, while others described plans to move back with family members or relocate to smaller cities after losing income.
A 45-year-old woman who had lived alone in central Tehran for two decades told Shargh she was considering taking in roommates because she could no longer afford rent on her own.
“More than two decades passed living alone and now I have to change my standards,” she told the newspaper. “Paying 400 million rials ($220) in rent in Tehran’s Bahar neighborhood is impossible for me.”
Another resident said he and his brother were looking for a third housemate after his workplace suspended operations and stopped paying salaries.
Reverse migration from Tehran
Shargh said some residents were preparing to leave Tehran entirely after years in the capital, describing what it called a wave of reverse migration driven by economic hardship and shrinking work opportunities.
One editor told the newspaper she was returning to her hometown Kashan in her mid-40s after more than two decades in Tehran because rising costs and declining work in publishing left her unable to continue living independently.
“I thought I would return to Kashan after retirement, not in middle age because I can no longer survive economically in Tehran,” she told Shargh.
The report also pointed to signs of tighter housing supply, citing online property listings and real estate agents who said available rental units had declined while demand increased, particularly after displacement linked to the conflict with Israel.
Erosion of independence
Sociologist Abdolvahab Shahlibar told Shargh that shared housing in Iran is increasingly a financial necessity rather than a lifestyle choice.
“Efforts to improve quality of life have in many cases been replaced by efforts to preserve basic survival,” Shahlibar told the newspaper, warning that being forced to return to parents’ homes or abandon independent living could reshape social relationships and personal identity.
“The Strait of Hormuz is a God-given treasure, like other mines and reserves placed at Iran’s disposal,” said Hossein Ali Hajideligani, a member of Iran parliament’s presiding board.
The Strait of Hormuz is a critical route for the digital economy, with several undersea fiber-optic cables running across the seabed and linking India and Southeast Asia to Europe through the Persian Gulf states and Egypt.
Iran had previously warned that submarine cables in the Strait of Hormuz were a vulnerable point for the region’s digital economy, raising concerns about potential attacks on critical infrastructure.
Last week, IRGC-linked media called for Iran to generate revenue from undersea internet cables passing through the Strait of Hormuz, framing the waterway not only as an energy and shipping chokepoint but also as a digital pressure point.
Hajieligani said Iran should also impose fees on ships passing through the waterway, citing guidance he attributed to Supreme Leader Mojtaba Khamenei’s messages.
He also called for an end to negotiations with the United States, saying Washington had “miscalculated” and was using the process to buy time rather than accept what he called Iran’s “absolute right.”
He said the US was the one that sought a ceasefire and alleged that Washington was after buying time for domestic political purposes.
