India, Aug. 24 -- US-Israel Iran War Live Updates: Iran is facing a difficult choice at petrol stations and that is keep some of world's cheapest fuel prices and deepen the strain on government finances, or raise prices and risk adding to the pressure already crushing households. As the war, US restrictions and fuel shortage continue to damage the economy, Tehran is preparing the public for a possible change in its long-standing fuel subsidy system.

The government has not announced a final nationwide increases, but officials have openly discussed several ways to reduce fuel consumption and control the growing gap between petrol demand and domestic production. A trial plan in Kerman province that would have sold some petrol at a muck high...