Tehran has canceled the lowest 5,000-Toman subsidized gasoline tier, effectively raising fuel costs for all citizens. Farhad Shahraki, deputy chairman of Iran's parliamentary energy commission, initially blamed a rise in consumption but then admitted the real cause is the war and blockade, which have made gasoline imports nearly impossible. The head of Iran's oil refining and distribution company separately appealed to the public to reduce driving, citing the volatile situation in the Strait of Hormuz.
The Iranian government has canceled the lowest tier of subsidized gasoline — the 5,000-Toman rate — eliminating the main form of fuel relief available to ordinary citizens. The move immediately raises transportation and living costs across the country.
Farhad Shahraki, the deputy chairman of Iran's parliamentary energy commission, acknowledged the real driver of the shortage: the war and the blockade. He stated that import conditions have made bringing gasoline into Iran nearly impossible, forcing the country to rely entirely on domestic refining capacity, which cannot meet demand.
Separately, the director of Iran's oil refining and distribution company publicly asked citizens to reduce driving and save fuel, linking the request to the volatile situation in the Strait of Hormuz and what he called a "consumption imbalance."
As The Zioneer has previously reported, Iran's oil exports fell 84% in May and oil production dropped 19% in the past month. Long fuel lines were reported in recent days in the city of Kerman. The cancellation of the subsidized fuel quota marks the most direct impact on Iranian households so far.
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