The Iranian government has allowed providers to raise internet service rates by about 34 percent to compensate for a persistent inflation rate of 50 percent.

State media in Iran announced the tariff increase after weeks of speculation about a price hike of as high as 100 percent.

Iran has a vibrant ecommerce sector, that might face losses because of higher Internet rates, which could also push overall inflation higher.

Minister of Communications and Information Technology, Issa Zarepour, had hinted at the possibility of an impending internet tariff hike during a government meeting earlier in the month.

This price surge comes as Iran has some of the strictest internet access regulations globally, with users experiencing low-quality connections and being forced to pay for expensive Virtual Private Networks (VPNs) and anti-filtering software to avoid the censorship imposed by the government.

The authorities in the Islamic Republic have extensively blocked many messaging apps, social media networks, and websites. They are also in the process of establishing a "National Internet," similar to China. Internet restrictions tend to intensify during widespread protests in the country.

Mohammad-Javad Azari-Jahromi, the former Communications Minister, expressed concerns, saying, "The result of the price hike is apparently clear; the end of this spiral will lead to securing the economic interests of satellite internet providers and widening the [political] gap between the people and the government."

Last week, Faraz Daily reported that Internet companies in Iran had petitioned the government to increase their broadband and mobile tariffs by 100 percent.