The Iranian government is set to increase gasoline prices for those using more than 110 liters per month, effective Tuesday, September 8, to alleviate economic problems stemming from the war and U.S. sanctions. A government spokesman revealed that excess fuel beyond the quota will be priced at 100,000 rials per liter (approximately 4 U.S. cents or 1.32 baht), while regular users still have the right to purchase fuel under the first two quota tiers at original prices. The first tier of 60 liters remains at 15,000 rials, and the second tier of the next 50 liters remains at 30,000 rials per liter. This increase comes after the government delayed it for fear of protests, following violent incidents in 2019 and earlier in December. Iran, an OPEC member, had already raised some subsidized fuel prices to control domestic demand.
Iran raises gasoline prices for excess usage to curb domestic demand, potentially reducing domestic consumption but not directly affecting global supply; however, as an OPEC member, this may signal policy to manage demand, but impact on RBOB is ambiguous; direction neg due to potential demand reduction.
