Politics
Tehran Drivers Face Higher Fuel Costs Under New National Energy Bill
The legislation sets new monthly fuel allocations that apply uniformly across provinces but hit Tehran drivers harder due to longer average commutes than those recorded in provincial centres such as Qom or Isfahan.
How we reported this
The Majlis passed the National Energy Security Bill on 2 July 2026, establishing monthly fuel rations for private vehicles and revised subsidy levels for commercial fleets. The measure affects an estimated 4.2 million registered vehicles in Tehran province alone.
Why the change arrives now
Parliament records show the bill responds to documented tanker incidents in the Strait of Hormuz during June. It replaces the previous open subsidy system with a tiered allocation recorded in the 2026 budget papers. Policy analysts note the shift aligns national fuel distribution rules with current supply constraints reported by the Oil Ministry.
Tehran residents who rely on personal cars for daily travel to district offices or industrial zones in the south of the city will see their allocations capped at 60 litres per month for standard sedans. Families in outer districts such as Eslamshahr face the same limit even though average one-way commutes exceed 35 kilometres, according to transport data cited in the legislation's explanatory notes.
Comparison with other provinces
Under the same national rules, residents in Qom province receive identical monthly caps, yet shorter average trip distances documented in the 2025 Household Expenditure Survey mean many households there exhaust rations later in the month. Isfahan province records similar patterns, with the bill applying the same per-vehicle formula without adjustment for urban density.
The legislation states that commercial taxi and delivery operators in all provinces may apply for supplementary coupons through provincial fuel offices. Tehran operators submitted 128,000 such applications in the first week after passage, the highest volume recorded by the National Iranian Oil Products Distribution Company.
Local advocates note that the next implementation stage begins on 15 July when electronic ration cards are activated at filling stations. The government says the policy will stabilise supply volumes reported in the June Oil Ministry bulletin. Further adjustments are scheduled for review in the autumn session of the Majlis.