WANA (Dec 13) –Today, Saturday, December 13, 2025, the Iranian government implemented a new gasoline pricing system, marking the first increase in fuel costs since the controversial price hike in 2019 that triggered widespread protests.

 

The move introduces a three-tier gasoline pricing model, aimed at reducing subsidy burdens, curbing excessive consumption, and slowing fuel smuggling. While officials insist the change will have a limited impact on most citizens, the announcement has reignited public debate over rising living costs and economic pressure.

 

Under the new pricing structure, gasoline purchased beyond the monthly quota is now priced at around 5,000 tomans per liter (approximately $0.04).

The new price of gasoline is displayed on a fuel dispenser following the rise in gasoline prices in Iran, at a gas station in Tehran, Iran, December 13, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Calm at Fuel Stations, for Now

On Saturday, as fuel stations across Tehran began operating under the new rates, there were no unusual queues or visible signs of protest, according to observations by WANA reporters on the ground. Traffic at stations appeared normal, with crowds similar to any regular day — a sharp contrast to the tense scenes that followed the 2019 price hike.

 

 

For many drivers, the change was met with a mix of resignation, acceptance, and concern about broader economic consequences.

 

“It does affect us, but eventually we have to get used to it; we have no choice,” said Mr. Hazrati, a cab driver, when asked how the increase would impact his monthly expenses.

 

He acknowledged the government’s justification but remained critical.

“Everyone has something to say. The government says it’s not cost-effective for them at the old price because they have to import gasoline. But we are also saying it’s not cost-effective for us, and you are making a mistake,”  he added.

 

People fill their cars following the new gasoline prices in Iran at a petrol station in Tehran, Iran, December 13, 2025. Majid Asgaripour/WANA (West Asia News Agency)

What Exactly Changed? — The Three-Tier Structure

Under the new system:

 

  • Tier 1 (Subsidized Quota): 60 liters per month at 15,000 rials per liter (1,500 tomans), reserved for basic consumption.
  • Tier 2 (Second Quota): The next 100 liters at 30,000 rials per liter (3,000 tomans), continuing a previously existing but now formalized rate.
  • Tier 3 (Free Market Rate): Fuel purchased beyond 160 liters per month, or without a smart fuel card, is priced at 50,000 rials per liter (5,000 tomans), targeting heavy users.

 

Despite the increase, gasoline in Iran remains among the cheapest globally, though analysts say the new ceiling price signals a shift toward narrowing long-standing subsidy distortions.

 

Mixed Reactions from Drivers

At fuel stations, opinions varied even among those most dependent on gasoline.

 

A motorcycle rider waiting in line said the increase was long overdue.

“Gasoline was very cheap in Iran. I think starting with these three rates is the right way, and overall it’s the right choice,” he said.

 

Asked about the effect on his own expenses, he downplayed the impact. “Because the difference with the free rate isn’t very big, I think it has a very small effect. It won’t be very significant,” he said to the WANA reporter in the Gas station.

 

Others, however, warned that gasoline prices often have wider consequences beyond fuel itself. “If the government could, instead of focusing on gasoline, they should control the prices of other goods,” Said Majid Ebrahimi, a taxi driver.

 

“Dairy products get more expensive five or six times a year, other goods ten times a year, and they only focus on gasoline.”

 

Ebrahimi added that while gasoline itself may still seem cheap, the price hike could be used as justification for broader inflation.

 

“Now you buy a small bottle of water for 10,000 tomans and gasoline for five tomans. It doesn’t seem like a big deal. But it will become an excuse for factory owners and others to raise their prices.”

People fill their motorcycles amid rising gasoline prices in Iran at a petrol station in Tehran, Iran, December 13, 2025. Majid Asgaripour/WANA (West Asia News Agency)

Why the Government Made the Move

Officials say the decision was driven by unsustainable fuel subsidies, rising consumption that outpaces domestic production, and persistent fuel smuggling to neighboring countries where prices are far higher.

 

Iran produces around 110 million liters of gasoline per day, while consumption can exceed 135 million liters, forcing costly imports and putting pressure on foreign currency reserves.

 

Authorities have long delayed any fuel price reform, wary of public backlash similar to the unrest seen in 2019. This time, the government has opted for a gradual, targeted approach, focusing on higher prices for heavy users rather than the general public.

 

For now, fuel stations remain calm — but as drivers warn, the real impact may be felt not just at the pump, but across the broader economy in the weeks ahead.

An Iranian man fills his car at a gas station in Tehran, Iran, following the rise in gasoline prices, December 13, 2025. Majid Asgaripour/WANA (West Asia News Agency)