Iran Raises Petrol Prices Amid US Economic Pressure
Iran has announced it will raise the price of petrol for heavier consumers as part of its efforts to isolate the country's economy from US sanctions. Under Iran's quota system, petrol prices are tiered: 1,500 tomans per litre for up to 60 litres in a month, 3,000 tomans for the next 50 litres, and 5,000 tomans for any additional litres. The price for the third tier will double to 10,000 tomans (about 4.5 US cents) from September 8. This increase comes as the Iranian currency is trading at a record low on the black market, with over 2.2 million rials needed to buy one US dollar.
The price hike has been implemented in response to pressure from the United States to isolate Iran's economy. The development follows years of heavy subsidies on petrol in Iran, which has made any changes to pricing politically sensitive. Iranian government spokeswoman Fatemeh Mohajerani explained that 'different numbers were mentioned in expert meetings, but because the president had promised the people, the rate of 10,000 tomans was set.'