Iran is one of the world's largest oil producers, supplying a significant amount of crude oil worldwide. However, fuel prices are rising amid the ongoing conflict with the United States.

Petrol-Diesel Price in Iran: 1 liter of petrol is being sold for thousands in Iran

Currently, the price of 1 liter of petrol in Iran is $0.029, which is 58928 Iranian rials in Iranian currency. In Indian currency, this is Rs 4.10 per liter. Since the Iranian rial is one of the weakest currencies in the world, even this large figure pales in comparison to the Indian rupee.

However, for Iranians, this is backbreaking inflation. If one has to pay 59,000 rials for a liter of petrol, filling up one's car tank would cost them lakhs, at the rate of 40 to 50 liters.

The government has fixed the quota

Amid the ongoing war with the US, inflation in Iran is skyrocketing. Inflation is currently hovering between 40% and 50%. As a result, the prices of goods have risen by thousands of rials, but people's incomes have not increased accordingly.

The silver lining is that Iran's first 60 liters of petrol each month is heavily subsidized, costing just 15,000 rials per liter. Once a citizen exceeds this limit, they receive a second quota, which was previously 100 liters. However, this has been reduced to 50 liters amid the war with the US.

This second quota costs 30,000 riyals per liter . When the total quota of 110 liters (60 + 50) is exhausted, citizens must purchase gasoline on the open market at 59,000 to 60,000 riyals per liter (i.e., the full price without subsidy).

Preparations for further reduction in quota

Mohsen Haji-Mirzaei, Chief of Staff to Iranian President Masoud Pezeshkian, issued an official statement yesterday, August 24th, that these quotas will certainly be further reduced due to the country's lack of refineries and fuel deficit. This means that the government is now considering reducing this 60-liter quota or increasing its price, which has caused outrage among ordinary Iranians.