Triple Pricing System for Diesel: A New Step Towards Fuel Efficiency and Anti-Smuggling
In a recent decision by the Iranian government, diesel fuel prices in the transportation sector will now follow a triple-pricing system. The main goal of this measure is to curb fuel smuggling and promote more efficient fuel usage across the diesel vehicle fleet.
Currently, over one million diesel-powered vehicles are actively operating in Iran, transporting either passengers or cargo. Their performance data is submitted every 15 days by the Ministry of Roads and Urban Development or the Ministry of Interior to the National Iranian Oil Products Distribution Company.
According to the new regulation approved by the Cabinet, starting from the beginning of July, diesel quotas will be allocated based on actual distance traveled. Vehicles must provide valid freight documentation (such as a waybill) to qualify for subsidized fuel. Any consumption beyond the allocated quota will be charged at higher rates.
Breakdown of the Triple Pricing System:
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First Tier (Subsidized): 300 tomans per liter for active vehicles within their allotted quota.
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Second Tier (Semi-Subsidized): 50% of the refinery purchase price, up to 40% above the assigned quota.
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Third Tier (Market Price): Full price based on the diesel purchase cost from refineries.
The second and third tier prices will be reviewed and updated every three months.
This move is expected to reduce smuggling incentives, enhance transparency in fuel distribution, and optimize energy consumption within the transportation sector.
