Iran doubles fuel prices in face of US sanctions

Iran has announced a hike in oil prices for large energy users amid new US sanctions, Iranian government spokeswoman Fatemeh Mohajerani announced on Sunday (September 6). 

In a report, Al Arabiya reported that the price of gasoline in Iran is set at three levels. A consumer pays 1,500 tomans per liter for the first 60 liters of gasoline per month, 3,000 tomans for the next 50 liters, and 5,000 tomans for each liter thereafter. 

It should be noted that 1 toman is equal to 10 Iranian rials.

Iranian government spokeswoman Fatemeh Mohajerani said on Sunday that the price of third-grade gasoline will increase from 5,000 to 10,000 per liter. The new prices will take effect on the morning of September 8.

However, he later clarified that the price of the first 60 liters and the next 50 liters will remain unchanged.
Iran is one of the world's largest oil producers. The country has long had a government-subsidized supply of gasoline at very low prices. As a result, the decision to increase fuel prices there is quite sensitive.

The announcement of the fuel price hike comes amid a sharp drop in the value of Iran's currency, the rial. On Sunday (September 6), the price of 1 US dollar was more than 2.2 million rials, according to various currency market monitoring websites.

Before the outbreak of the Middle East war on February 28, the rial was worth about 1.7 million against the dollar. By the end of April, it had fallen to about 1.8 million rials.

Meanwhile, the United States is tightening new sanctions to increase pressure on Iran's economy. Late last month, US Treasury Secretary Scott Besant announced plans to create an "economic stranglehold" on Iran.

He said the goal is to end the war quickly by increasing financial pressure.