Iranian government officials are reportedly exploring options to increase petrol prices, a move that has drawn immediate caution from members of parliament. Reza Sepahvand, spokesman for the Parliament’s Energy Committee, confirmed to the Iranian Labour News Agency (ILNA) that while internal discussions are underway within the Plan and Budget Organization, no formal proposal has been submitted to the legislature.
Currently, Iranian petrol is heavily subsidized. Private vehicle owners receive 60 liters per month at 15,000 rials per liter, with an additional 100 liters available at 30,000 rials. Excess fuel purchased via station cards costs 50,000 rials per liter. At the current open-market exchange rate of approximately 1.9 million rials to the dollar, these prices remain among the lowest globally.
Despite the fiscal burden of these subsidies, Sepahvand argued that any price adjustment would be “in no way advisable” given the current context of war and severe inflation. He emphasized that an increase would likely trigger a rise in transport costs and consumer prices, further straining household budgets that are already struggling with declining purchasing power.
The government’s hesitation is largely informed by the historical precedent of November 2019, when a sudden hike in fuel prices led to widespread nationwide protests. The unrest, which saw security forces respond with significant force and a week-long internet blackout, serves as a cautionary tale for policymakers regarding the sensitivity of fuel pricing in the Islamic Republic.
Lawmakers from the Energy Committee are expected to press officials from the Oil Ministry and the National Iranian Oil Products Distribution Company for clarification on their plans in the coming days.