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Iran’s Three Tier Gasoline Plan Collides with Food Inflation and Health Strain

iran torbatjam unrest crackdown 16012023
Security forces confront residents during unrest in Torbat-e Jam, northeastern Iran, as authorities move to suppress protests amid rising economic pressures — January 16, 2023

Three-minute read

By Saturday, December 13, 2025, Iran’s leadership pushed through one of its most politically sensitive decisions in years: nationwide three-tier gasoline pricing. The move was presented as controlled and gradual. In practice, it landed in a week when regime-linked media themselves documented accelerating price hikes, public-health stress, infrastructure failures, and unusually blunt admissions of governance failure from senior officials.

What makes this moment distinct is not any single crisis, but the convergence. The gasoline plan is being rolled out at a time when households are already absorbing new shocks in food, medicine, and basic services—and when the state is signaling concern about unrest even as it tightens pressure.

Fuel Pricing as a Security Decision

According to the state media, the policy took effect from the early hours of Saturday, December 13. Under the new framework, motorists receive 60 liters of gasoline at 1,500 tomans per liter, another 100 liters at 3,000 tomans, and any additional consumption at 5,000 tomans per liter. Use of station fuel cards also triggers the highest rate.

Gasoline has long been treated by Iranian authorities as a trigger issue, shaped by the memory of November 2019, when a sudden price hike helped spark nationwide protests. That history looms over the current rollout. Reports and social-media reactions cited in the source pack describe heightened security readiness around fuel stations and widespread public references to 2019, suggesting the policy is being implemented with unrest firmly in mind.

Food Inflation in Everyday Terms

The gasoline decision coincided with renewed food price shocks documented by state-affiliated outlets. On Friday, December 12, the state-linked site Fararu reported that a standard 1.8-kilogram tray of eggs was selling for over 250,000 tomans, compared with a previous high of 180,000 tomans earlier in the year. A 30-egg packaged tray rose from 175,000 tomans in October to 245,000 tomans this week.

Fararu also reported that full-fat milk, which sold for 34,000 tomans at the start of the year, reached 52,000 tomans by early December. These are not luxury goods. In Iran’s political economy, rising prices for eggs and milk signal a shrinking margin for households that already rely on substitutions as meat becomes unaffordable.

Currency instability amplifies the effect. Regime-linked economic coverage this week cited the free-market dollar climbing toward 129,000 tomans, while official rates remain far lower. For the public, the widening gap reinforces the sense that official assurances do not govern real prices. Official data and even regime-adjacent analytics tend to understate the gravity of the crisis, but even those sources show why daily costs feel unmanageable.

Medicine, Disease, and Shrinking Buffers

Health pressures are emerging along the same fault lines. On Saturday, December 13, the labor news agency ILNA quoted Alireza Chizari, a pharmaceutical and medical equipment association official in Tehran, describing a sevenfold increase in the price of some medicines following the removal of preferential currency. One example cited showed a jump from 4,200 tomans to 28,500 tomans.

The timing matters. Income growth has not kept pace for most of the population, meaning medical costs are increasingly shifted onto households. Other reporting in the source pack warned that large numbers of patients—particularly those with chronic illnesses—risk losing access to essential drugs.

At the same time, the regime acknowledged a worsening influenza wave. On December 12, a Health Ministry official said 34% of recorded respiratory infections were influenza—more than three times the national warning threshold—and named multiple provinces as above average. Another official cited 101 deaths by December 11, while a health-system analyst described disease management as effectively abandoned amid economic strain and competing crises.

Infrastructure failures added to the sense of systemic stress. Late on Thursday, December 11, a ground subsidence incident in Tehran’s Vali-Asr area created a crater roughly 10 meters wide and 1.5 meters deep, swallowing parked vehicles—an image that resonated far beyond the immediate damage.

Elite Admissions and a Narrowing Path

Perhaps most revealing were the words of senior officials themselves. On Friday, December 12, state television aired remarks by Parliament Speaker Mohammad Bagher Ghalibaf, who acknowledged that low participation rates mean “the problem is elsewhere,” and said the clerical dictatorship has failed to prove the “efficiency of religion in governing society,” thereby harming religion. Such language is not a call for reform; it is an internal warning about legitimacy erosion.

Taken together, the week’s developments point to a regime operating under constraint. The gasoline plan is not a technocratic adjustment but a risk-managed extraction: an effort to raise revenue and ration scarcity while avoiding the kind of sudden shock that could trigger a broader eruption.

What defines this moment is the sheer weight of pressure on the system. Fuel rationing is being imposed as food and medicine prices surge, disease spreads, and infrastructure visibly fails, while senior officials openly concede lost credibility. The regime is acting under duress, not confidence. Its choices have narrowed to a stark trade-off: absorb fiscal collapse or push the cost onto society. In that setting, even routine economic decisions risk becoming triggers for unrest the state is struggling to contain.

NCRI
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