On December 13, Iran implemented a new pricing tier for its subsidized gasoline, raising prices to address soaring fuel demand without provoking public unrest. Starting Saturday, most vehicles must pay 50,000 rials (about 4 US cents) per litre for fuel beyond a monthly limit, while the first 160 litres can still be purchased at lower rates of 15,000 and 30,000 rials per litre.

This change marks the first adjustment since the controversial 2019 price hike, which led to widespread protests and a violent crackdown. Despite rising costs, Iranian gasoline remains among the cheapest globally, with government subsidies reported at $52 billion in 2022.

Economists warn that the price increase could contribute to the nation's existing high inflation rate, which is around 40%. As the government reviews pricing every three months, officials indicate that further increases may be anticipated in the future. The public response has been muted so far, with many expressing skepticism about the effectiveness of protests against such price hikes.