The National Iranian Gas Company (NIGC) has introduced a new household gas pricing system designed to improve fairness and energy efficiency. The scheme, implemented in late September as part of the government’s Energy Consumption Optimization Package, represents the most comprehensive reform of gas tariffs in recent years.
According to NIGC Managing Director Saeed Tavakoli, the objective is not a general price increase but a rational adjustment of tariffs to reflect consumption behavior. Only households in the highest consumption tier will face higher rates, while around 90 percent of users will see no change in their bills.
Under the new structure, the previous 12-tier system has been reduced to four, and the earlier five climate zones have been replaced with about 1,300 local climatic regions. The model applies an Increasing Block Tariff (IBT) framework that standardizes rates across seasons while encouraging efficient gas use. Consumption thresholds for each city are based on five-year averages, ensuring that low-consumption and low-income households are protected. More than 1.5 billion data points were analyzed to establish the new limits, resulting in a detailed 1,200-page reference covering all regions.
Due to the 45-day meter reading cycle, the new tariffs will be fully reflected in household bills from mid-November. Initial data show that 75 percent of households consumed less than 100,000 rials (around 10 cents) worth of gas, and 94 percent spent under 500,000 rials (about 50 cents), indicating that most consumers remain within standard limits.
The plan also exempts the first two income deciles from payment in the lowest tier and obliges government institutions to cut gas use by 20 percent from 2022–23 levels. Additional revenue from high-consumption users will be directed to support roughly 500,000 low-income families through welfare programs.
The NIGC says the reform aligns with national goals of social equity, energy efficiency, and responsible resource management.
