Iran Announces New Fuel Rationing Policy, Adjusts Subsidized Gasoline Allocation
In a significant move to reform its extensive fuel subsidy program, the Iranian government has announced the initial phase of a new policy that will alter the subsidized gasoline quotas for millions of vehicles. The decision, aimed at optimizing resource allocation, marks a strategic shift in the nation’s economic planning.
Key Changes to Fuel Quotas
The newly implemented government resolution will lead to the adjustment of subsidized fuel rations for a wide range of vehicles. According to official announcements, the first phase will affect a minimum of 4.28 million vehicles. The changes specifically target several categories:
- Government Vehicles: Approximately 180,000 vehicles with red license plates (indicating state ownership) will no longer receive gasoline at the 3,000 Tomans per liter rate. These vehicles will now be required to purchase fuel at the higher, 5,000 Tomans rate.
- Imported Foreign Cars: All imported foreign vehicles will lose access to the 1,500 and 3,000 Tomans subsidized gasoline quotas.
- Cars in Free Trade and Special Economic Zones: Around 100,000 vehicles registered in these zones will also be excluded from the lower-tier subsidized fuel prices.
- Private Citizens with Multiple Cars: Individuals owning more than one gasoline-powered passenger car will only be eligible for the subsidized 1,500 and 3,000 Tomans quotas for a single vehicle. Officials clarified that this rule applies specifically to multiple passenger cars and not to cases where a citizen owns, for example, one car and one truck.
Official Rationale and Implementation
Mr. Keramat Vays Karami, Managing Director of the National Iranian Oil Products Distribution Company, provided details on the policy’s implementation. He emphasized that the measure is designed with precision to ensure fairness, noting that the quota adjustments for multi-car owners are specific to gasoline-powered cars and not other vehicle types like trucks.
Furthermore, newly registered vehicles receiving license plates for the first time will also be ineligible for the 1,500 and 3,000 Tomans quotas. In outlining the reasoning for the new policy, government authorities stated that this step is a necessary starting point in the broader context of the nation’s economic management and the prudent distribution of national resources. In the most extensive scenario, the quotas for up to four million vehicles could be shifted to the 5,000 Tomans price tier.
This policy revision is viewed as a measured step by the government to streamline its subsidy system, ensuring the continued provision of essential services while promoting efficient energy consumption across the country.