Iran’s Petrol Prices Hiked for Second Time in 2026 Amid Ongoing Economic Strain

New fuel pricing targets consumption above 110 litres monthly, doubling costs to 100,000 riyals per litre.

Published On 8 Sep 20268 Sep 2026

Iran has implemented a second petrol price hike as the government seeks to address shrinking revenues and maintain its subsidy program.

Under the new scheme, the first 60 litres (approximately 16 gallons) will be priced at the existing rate. Consumption above this threshold will be billed at a higher tier: the next 50 litres (about 13 gallons) will be charged at double the previous price, bringing the cost to 100,000 riyals per litre (≈$0.07). This increase applies to drivers using more than 110 litres (≈29 gallons) per month.

Although Iran’s petrol prices remain among the lowest globally, the country faces severe economic pressure from its conflict with the United States, punitive sanctions, and the blockade of Iranian ports. These factors have prompted officials to contemplate reforms to fuel subsidies in order to offset the loss of revenue.

“If we consume it properly, we can manage with the amount of gasoline we produce in the country,” said Mohammad Bagher Ghalibaf, speaker of the Iranian parliament, during a television address earlier this month. He added, “What is clear is that we need to save gasoline in our consumption. Part of the responsibility for this high consumption, however, does not lie with our people; it lies with our industry.”

Domestic consumption now exceeds both production and pre‑war export levels, creating a widening energy gap.

Videos shared on social media allegedly depict extensive queues at Tehran petrol stations, underscoring the severity of the energy shortage.

This marks the second price increase since December, and fears of additional hikes are already stirring public unrest.

The 2019 antigovernment protests were triggered by fuel‑price rises, and Iranians are presently grappling with a slowdown in economic activity, soaring inflation, and a depreciating rial.

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