Fuel prices have once again increased in Iran, the oil-rich Middle Eastern nation. The country's government has urged citizens to be economical, as Tehran struggles to manage a growing revenue deficit and maintain its costly subsidy system. According to a report published by Reuters and AFP on September 8, 2026, this price hike comes at a time when Iran is experiencing extreme economic crisis due to ongoing conflicts with the United States and Israel, severe sanctions, and the blockade of Iranian ports by US forces.
According to the new pricing structure, the previous price for the first 60 liters of petrol per month will remain unchanged. However, a slightly increased price will be charged for the subsequent 50 liters of petrol. This means that if a motorist uses more than 110 liters of petrol per month, the price for each additional liter will double, rising from 50,000 rials to 100,000 rials (approximately 0.07 US dollars). The objective of this measure is to control fuel consumption and reduce the burden of subsidies on the government.
Despite being one of the countries with the cheapest fuel in the world, Iranian citizens are now facing difficult economic circumstances. The country's revenue has significantly decreased due to the ongoing conflict with the United States, extensive sanctions, and the blockade of Iranian ports by US forces. In this situation, Iranian officials had been considering adjusting fuel subsidies for several months to offset some of the reduced revenue.
Iran's Parliament Speaker Mohammad Bagher Ghalibaf stated in a televised address earlier this month, “If we use it correctly, we can manage with the petrol produced domestically.” He further added, “It is clear that we must be economical in our fuel consumption. Of course, our people alone are not responsible for this high consumption; our industries are also to blame.” His remarks indicate the government's emphasis on fuel conservation.
Iran's budget is almost 90 percent dependent on oil exports. However, these exports have drastically declined in recent months. While previously about 4 million barrels of oil were exported daily, this figure dropped to approximately 2.2 million barrels per day in August. Simultaneously, the country is consuming more oil than it produces domestically, further exacerbating the nation's fuel crisis.
A clear picture of the country's ongoing fuel crisis is visible in videos circulating on social media. These videos show long queues at various petrol stations in Tehran, indicating fuel shortages and growing concern among citizens. These scenes evoke memories of previous fuel crises and are creating public discontent.
This is the second petrol price hike since December. Previously, widespread anti-government protests erupted in Iran in late December 2022 and early 2023, triggered by rising fuel prices. Those demonstrations challenged the country's political stability and drew international attention.
The Iranian populace is already severely affected by economic slowdown, high inflation, and a significant depreciation of the rial's value. The new increase in fuel prices will add further pressure on them and is feared to once again trigger widespread public protests and instability, similar to past incidents.
