Iran has recently raised petrol prices, particularly impacting those who consume more than 110 litres monthly. This change, which doubles the cost from 50,000 riyals to 100,000 riyals per litre, is part of the government’s effort to manage declining revenues amidst a challenging economic landscape. While the first 60 litres will remain at the lower price, the new pricing structure highlights the increasing pressure on citizens to conserve fuel.
The Iranian government attributes the need for these adjustments to a significant drop in oil exports, which have fallen from approximately 4 million barrels per day to about 2.2 million. This decline, exacerbated by US sanctions and ongoing economic difficulties, has prompted officials to reconsider fuel subsidies that have historically kept petrol prices low. With oil exports constituting around 90% of the national budget, the implications of these price hikes are profound.
As citizens face higher costs, there are concerns over potential unrest similar to the protests that erupted last year following previous fuel price increases. The government is urging the public to manage fuel consumption wisely, suggesting that the country can sustain itself if consumption is controlled. However, the message also reflects an acknowledgment of the systemic issues within Iran’s industrial sector that contribute to high consumption levels.
Videos circulating on social media depict long queues at petrol stations in Tehran, signalling a growing frustration among the populace. With inflation and currency devaluation already straining household finances, these fuel price hikes may further complicate the daily lives of Iranians, leading to increased economic hardship and potential social unrest.
Source: Al Jazeera
