As of midnight on Tuesday, Iran has cut state subsidies on petrol in a move that saw prices rise at midnight by up to 42 per cent, reports Al Arabiya.
The price of one litre of regular gasoline rose to IRR10,000, while the price of one litre of premium gasoline went up to IRR12,000 and the price of diesel to IRR3,000.
Since April 2014, the price of petrol has been set at IRR7,000 and the price of diesel at IRR2,620.
Davoud Arab-Ali, spokesman for the National Iranian Oil Refining and Distribution Company (NIOPDC), says the government has scrapped the subsidised gasoline rationing system to unify the petrol and gasoil prices, as quoted by the state news agency IRNA.
The government has also cancelled its subsidy for motorists’ share of gasoline, which was 60 litres of gasoline per month, subsidised by the government at IRR7,000 per litre.
Petrol in Iran is still among the cheapest in the world, but analysts say the increase will be unwelcome in a country where a quarter of the adults are jobless or underemployed.
The government of President Hassan Rouhani is moving towards a unification of petrol and gasoil prices in order to offset the budget deficit since April 2014.
(1 AED = IRR7,847.97, at the time of publishing)