According to KhabarOnline, an Iranian News Agency, According to a cabinet decree, gasoline is now sold nationwide at three different prices: subsidized gasoline at 1,500 tomans per liter (approximately USD 0.03), semi-subsidized gasoline at 3,000 tomans (around USD 0.06), and free-market or “emergency” gasoline at 5,000 tomans per liter (about USD 0.10).
How the quota system works
Under the new framework, private passenger vehicles receive a monthly quota of 60 liters of gasoline priced at 1,500 tomans (≈ USD 0.03) and an additional 100 liters at 3,000 tomans (≈ USD 0.06). These quotas can only be accessed using the vehicle’s personal fuel card.
Any consumption beyond these two quotas is supplied through emergency fuel cards available at gas stations and is charged at the highest rate of 5,000 tomans per liter (≈ USD 0.10).
Implementation of the policy has been assigned to the National Iranian Oil Products Distribution Company (NIOPDC), a subsidiary of the Ministry of Petroleum.
Situation at fuel stations on day one
Reports from fuel station operators indicate that refueling operations have remained normal during the first hours of implementation. While short and localized queues were observed at a limited number of stations—mainly due to increased travel at the end of the public holiday—station operators say there have been no disruptions to service.
Public and bi-fuel vehicles
The government has stated that both the price and volume of gasoline quotas for public gasoline-powered vehicles, including taxis and pickup trucks, will remain unchanged.
For bi-fuel public vehicles, such as taxis and light commercial vehicles, the primary quota remains intact, while the secondary quota has been reduced by 50 percent. The same 50 percent reduction applies to the second gasoline quota allocated to privately owned bi-fuel vehicles.
At the same time, authorities have announced a nationwide program to convert single-fuel gasoline vehicles to bi-fuel systems free of charge, in line with the executive regulations of Article 8 of Iran’s Clean Air Law. The measure is aimed at reducing gasoline consumption and emissions.
Operational and oversight measures
Under a separate decision by the emergency fuel pricing task force, the NIOPDC has been instructed to increase the capacity and allocation of station emergency fuel cards in order to prevent long queues during the initial phase of the rollout. The company is also required to put in place mechanisms for handling consumer complaints.
First price adjustment in six years
Gasoline prices in Iran had remained unchanged since November 2019. The government now describes the new pricing structure as part of a “gradual energy reform” strategy—an approach that experts say is designed to avoid sudden price shocks while slowly addressing high consumption levels and the heavy fiscal burden of fuel subsidies.
The launch of the three-tier pricing system comes as Iran continues to grapple with structural challenges in its energy sector, where subsidized fuel, high domestic consumption, and long-term sustainability concerns remain deeply intertwined.