Iran offers some of the lowest petrol prices in the world, with fuel costing around $0.03 per litre, which is roughly 8.4 to 15 Pakistani rupees. This low price is possible because of heavy government subsidies that reduce the actual cost for consumers.
The country has large oil reserves and strong domestic production, which allows it to supply fuel at a lower base cost. The government then adds subsidies to keep prices affordable for the public. This system is designed to support daily life, especially for transport and basic household needs.
Iran also uses a tiered pricing model. Citizens are given a limited amount of fuel at a very low rate each month. If they use more than that limit, they have to pay a higher price. This approach helps control excessive consumption while still keeping essential fuel cheap.
Despite economic challenges, including international sanctions and regional tensions, Iran has continued this subsidy policy. Officials see it as a way to reduce the financial burden on citizens and maintain stability in daily expenses.
However, experts note that such subsidies can put pressure on government finances over time. Still, for now, cheap fuel remains a key part of Iran’s economic system and public support policy.
