Full Breakdown
Iran’s Fuel Crisis Deepens as War-Driven Prices and Subsidy Cuts Hit Drivers
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War-Driven Inflation and Currency Collapse
A Wall Street Journal report notes that the Iranian rial has fallen to roughly 2.3 million per U.S. dollar, a plunge that has amplified the cost of imported goods. The same report links the price surge to the economic fallout of the ongoing war and a U.S. naval blockade of Iranian ports along the Strait of Hormuz, which restricts fuel imports and hampers refinery repairs. A Euronews study cited in the article estimates that most Iranians earn about $250 a month, underscoring the strain of rising prices on low-income households.
Government Rationing and Price Increases
In early May, the Iranian regime doubled the price of gasoline for users exceeding 110 liters per month, targeting passenger-vehicle owners whose monthly fuel quotas were cut. The policy aims to conserve dwindling supplies but has left many drivers stranded. A representative of the Union of Truckers and Drivers Organizations Across Iran described a northeast-Iran driver who was forced to wait at a gas station with his family because the station had run out of fuel.
Transportation Workers Feel the Pinch
The fuel shortage has translated into lost workdays for transport operators. According to the Wall Street Journal, about 120 taxi drivers in Kerman reported being unable to work for roughly one-third of each month, saying they wait up to 20 days for passengers and endure 10 days of fuel scarcity. Snapp, Iran’s largest ride-share platform with an estimated 3 million drivers, saw dozens of its workers quit after declaring they could no longer afford to operate.
Strikes and Protests Across the Sector
Protests have spread beyond taxi drivers. The Human Rights Activists News Agency, a U.S. NGO, reported that truck drivers on the Iraq border staged a strike over fuel shortages. The Wall Street Journal also noted that truckers at the Bandar Abbas port warned of possible walkouts. In a statement posted by Iran’s Union of Truckers and Drivers, port drivers said the rising fuel costs force them and their families to pay out-of-pocket, a burden they can no longer bear.
Outlook Amid Ongoing Pressures
The combination of a devalued rial, limited fuel imports, and reduced subsidies suggests that the shortage will persist, keeping large segments of Iran’s transport sector idle for extended periods. Continued blockades and the inability to fully repair war-damaged refineries are likely to prolong the crisis, fueling further unrest among workers dependent on affordable fuel.
