The Iranian government has increased fuel prices up to 75 percent as part of the second phase of the subsidy reform plan.
The price of semi-subsidized gasoline increased from 4,000 rials per liter to 7,000 rials as of Friday. Normal-priced gasoline jumped from 7,000 rials to 10,000 rials per liter. Semi-subsidized diesel prices increased from 1,500 rials to 2,500 rials. Normal diesel prices jumped from 3,500 to 5,000 rials.
Car fuel in Iran is among the cheapest in the world. The latest slashes in fuel and energy subsidies are meant to allocate government money for other sectors in production and infrastructure. The government is determined to finally liberalize prices of energy carriers and reduce growing energy consumption in Iran.