Banking News – Amid economic crisis, Iran has doubled petrol prices for consumers who exceed excessive consumption limits. The new rate, effective from Tuesday, marks the second price hike since December. Those purchasing more than the monthly quota of 110 liters will now have to pay 1 million rials per liter. The government has stated that the additional revenue from the price hike will be provided to households.

Although petrol prices in Iran still remain among the lowest in the world, the weakening currency and declining purchasing power have placed additional pressure on the public. Keramat Ves Karami, CEO of the State Oil Distribution Company, stated that the new prices will affect approximately 15 percent of consumers.

According to him, daily petrol consumption reached 145 million liters in August, while domestic production capacity stands at only 122 million liters. Experts have attributed the high consumption to aging vehicles and poor public transportation. However, with annual inflation at approximately 67 percent, they have stated that the petrol price hike could further fuel inflation.

The 2019 petrol price hike had triggered widespread protests in Iran. Following the latest price increase, residents of Tehran have expressed concerns that prices of daily essentials, including food items, will also rise. Hamid Mirzaei, a resident of Tehran, stated that petrol price hikes will make life even more difficult for the general public.