TEHRAN — Iran has introduced a higher gasoline price for motorists whose monthly consumption exceeds a specified threshold, as the government seeks to reduce excessive fuel use amid severe economic and energy pressures.

Under the new system, the first 110 litres purchased each month remain subject to the existing subsidised rates. Consumption above that level is charged at a substantially higher price, according to statements from Iranian government officials reported by state media.

The measure is aimed primarily at consumers with unusually high monthly fuel demand rather than ordinary motorists. The government has described the adjustment as a response to current economic conditions and the need to manage gasoline consumption.

Iran has traditionally maintained some of the world’s lowest domestic gasoline prices through extensive subsidies. Those low prices have contributed to strong domestic demand and placed additional pressure on the country’s fuel system.

The latest change follows an earlier adjustment to subsidised gasoline prices and reflects growing government efforts to control consumption while maintaining lower rates for ordinary drivers.

Under the current allocation structure, motorists can continue purchasing fuel through lower-priced quotas before the higher rate becomes applicable.

The policy is particularly significant because fuel-price changes have previously triggered public concern in Iran. A major increase in gasoline prices in 2019 was followed by widespread protests.

Authorities have therefore attempted to make the latest adjustment more targeted, limiting the higher price primarily to consumption beyond the established monthly allowance.

The decision comes while Iran is facing intense economic pressure from international sanctions and the continuing regional conflict. Oil exports, foreign currency availability and domestic energy management remain major challenges for the government.

Higher fuel costs for heavy users could encourage households and businesses to reduce unnecessary consumption and improve fuel efficiency.

However, the policy may also increase operating costs for people and businesses that genuinely require larger quantities of gasoline.

Iran’s government is balancing the need to protect subsidised fuel access for ordinary consumers with the growing cost of maintaining exceptionally cheap domestic gasoline.

The latest measure therefore represents another attempt to reform fuel consumption without imposing a broad price increase on all motorists.

As economic pressures continue, further changes to Iran’s energy-subsidy system could become an important part of the government’s efforts to manage domestic demand and public finances.