Iran to raise gasoline prices by 40 per cent amidst cutting subsidies: Report

TEHRAN: Iran's state news agency is reporting the Islamic Republic will raise gasoline prices by some 40 percent as a result of cutting subsidies.

The IRNA report Monday said the new prices will take effect from Tuesday morning. While previous attempts to raise prices have sparked dissent, last year's increase saw no major unrest.

IRNA said the price per liter for subsidized gasoline would be 10,000 rials (34 cents), up from 7,000 rials (24 cents). That's about a $1.28 gallon, compared to the average U.S. price of $2.66 a gallon.

Diesel fuel prices also will rise to 3,000 rials (9 cents) per liter.

Iran, an OPEC member, consumes 70 million liters (18.49 million gallons) of gasoline daily. In 2007, protesters rioted and damaged gas stations over prices increasing, with authorities arresting dozens.