Despite the widespread application of market regulation price policies in the Iranian economy, they impose complex welfare consequences on households, making their quantitative assessment an undeniable necessity. This study aims to explain the impact of these policies on the welfare changes of urban households in Iran over the period 1991 to 2024, employing the Quadratic Almost Ideal Demand System (QUAIDS) within the compensating variation approach and the preference function framework. In this context, by estimating the demand system for five commodity groups including red meat, poultry meat, vegetable oil, sugar and sweets, and other goods and services, price and income elasticities are extracted. The compensating variation (CV) index is then calculated as a precise monetary measure of welfare changes resulting from price fluctuations, at the level of the average urban household. The results indicate that the four basic food items are necessities in terms of expenditure and inelastic in terms of price. Based on the cointegration test results, the existence of a long-run equilibrium relationship among budget shares, relative prices, and real household expenditures is confirmed. Furthermore, the average compensating variation over the study period is estimated at about 0.82 percent of total household expenditure, reflecting the protective role of price control policies in maintaining consumer welfare. The statistical test of the research hypothesis, using Newey-West standard errors, confirms the positive and significant effect of market regulation price policies on urban household welfare at the 1 percent level.