Gasoline prices in Iran remain astonishingly low compared to many countries around the world. The retail price of gasoline in the country is only about 1–1.2 THB per liter, while bottled drinking water in Thailand costs around 12–15 THB per liter. This means that gasoline in Iran is more than ten times cheaper than bottled water in Thailand.
Why So Cheap?
The massive difference is due to the Iranian government’s heavy fuel subsidies, aimed at easing the cost of living for its citizens.
The Challenges
However, this policy comes with significant challenges:
- Budget strain on the state
- Fuel smuggling to neighboring countries
- Long-term risks to economic stability
Iran’s approach highlights the trade-off between short-term affordability and the long-term sustainability of its economic and energy policies.
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