Iran has announced a sharp increase in fuel prices as the country grapples with a severe economic crisis following the outbreak of war, German news agency dpa reported.
Starting Tuesday, the price of petrol sold on the open market will double from 50,000 rial (RM2) to 100,000 rial (RM4) per litre, state-owned National Iranian Oil Products Distribution Company chairman Keramat Veys-Karami said on state television.
However, the price of subsidised petrol will remain unchanged, he said.
Iran currently has some of the cheapest fuel prices in the world. Under the subsidised system, motorists can purchase their first 110 litres of petrol using a fuel card for just over US$0.01 per litre.
Once that quota is exhausted, the regular price of 100,000 rial per litre will apply.
Although the new price remains low by Western standards, the increase could have a significant impact on Iranians, whose incomes are considerably lower, particularly through higher transport and energy costs as well as inflationary pressure.
Concerns over possible fuel shortages at the end of August had already triggered long queues at petrol stations. In Tehran, a city home to millions, motorists were reportedly waiting outside petrol stations as late as midnight.
The Iranian government has acknowledged problems linked to the war launched by the United States and Israel against the country in late February.
President Masoud Pezeshkian has urged both the government and the public to conserve resources as the country continues to face the economic fallout.
