Energy Policy

Iran’s New Gasoline Pricing Scheme Exposes Economic Strains and Risks Regional Instability

By Economics Desk | November 27, 2025

Iran’s introduction of a higher gasoline price tier reveals deep economic challenges, risking domestic unrest and further destabilizing a volatile region critical to American interests.

On December 6, Iran will implement a new gasoline pricing tier that sharply increases fuel costs for consumption beyond government-set quotas. This policy adjustment, which raises prices from the subsidized 15,000 rials per liter to a staggering 50,000 rials for excess use, reflects the regime’s urgent attempt to alleviate mounting fiscal pressures while controlling rampant fuel consumption. Why Does This Matter for America? Iran’s economic fragility contributes directly to regional instability—instability that reverberates across global energy markets and heightens threats to U.S. national security. As Tehran struggles under inflationary weight and declining purchasing power of its citizens, the likelihood of...

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