TEHRAN/ LONDON: Iran will raise the price of government-subsidised fuel under limited conditions starting December, the semi-official Tasnim news agency reported on Tuesday, as authorities attempt to curb soaring demand without triggering public backlash.
According to the report, refueling using emergency fuel cards will be charged at 50,000 Iranian rials per litre ($0.44 at the free market rate) roughly 10% of what the state pays refineries to produce the same amount.
The move reflects Tehran’s balancing act: containing rising fuel consumption while avoiding nationwide unrest triggered by previous subsidy reforms.
Meanwhile, OPEC+ , the oil-producing alliance that includes OPEC members and partners such as Russia is expected to keep existing output levels unchanged at its meeting on Sunday, three sources familiar with discussions said.
Talks are instead expected to centre on reassessing long-debated production capacity baselines, the figures used to set future output quotas. Ministers will discuss a mechanism to determine each country’s maximum production capacity for reference in 2027.
Internal disagreements continue to complicate negotiations. Nigeria has pushed for higher output allowances despite limited spare capacity, while the United Arab Emirates maintains significant unused capacity and recently secured a quota increase. Angola exited the alliance in 2024 after rejecting its assigned output ceiling.
OPEC+ had cut production sharply prior to April, peaking at reductions of 5.85 million barrels per day nearly 6% of global supply. Eight members have since increased output by roughly 2.9 million bpd through December to regain lost market share. The group paused further hikes in November amid forecasts of oversupply.
-Alex Lawler
