Iran Raises Petrol Prices Amid US Economic Pressure

The Iranian government has raised the price of petrol for heavier consumers as part of its efforts to cope with economic pressure from the US. The quota system, which prices petrol in three tiers, will see the third tier's rate increase to 10,000 tomans (about 5.7 Singapore cents) per litre from September 8.

The first and second tiers' rates remain unchanged at 1,500 tomans per litre for a consumer's first 60 litres and 3,000 tomans per litre for their next 50 litres, respectively. This move comes as the Iranian currency has been trading on the black market at over 2.2 million rials to the US dollar.

The increase in petrol prices is part of Iran's efforts to reduce its reliance on heavily subsidised fuel. The country has faced economic pressure from the US since President Donald Trump withdrew from an international deal struck with Tehran on its nuclear programme in 2018. The US has imposed sanctions, including a naval blockade on Iranian ports, aiming to reduce oil exports to zero.