Gasoline Consumption Hits Record In Iran Amid Shortages

Jafar Salari-Nasab, the CEO of the National Iranian Oil Refining and Distribution Company
Jafar Salari-Nasab, the CEO of the National Iranian Oil Refining and Distribution Company

Iran is facing record gasoline consumption, sparking fears of rationing as the country battles continued shortages.

Jafar Salari-Nasab, the CEO of the National Iranian Oil Refining and Distribution Company (NIORDC), stated, "On Saturday, 130 million liters of gasoline were distributed in the country, which shows an 18 percent increase compared to the same period last year, which was 110.1 million liters."

New year festivities exacerbated the situation as Iranians traveled during the festive season. He added, "On average, from the beginning of Norouz [March 20] until now, 121.7 million liters of gasoline have been consumed in the country daily, showing an increase of 6.2 percent, equivalent to 7.2 million liters, compared to the same period last year, which was 114.5 million liters."

Concerns regarding the rising consumption have prompted the National Iranian Oil Refining and Distribution Company to issue a warning, urging citizens to manage fuel consumption and observe optimization measures.

Jalel Salari, CEO of the National Iranian Oil Refining and Distribution Company, emphasized the inefficiency of domestically produced vehicles, citing their high fuel consumption compared to international standards. He attributed Iran's gasoline deficit to the annual increase of two million vehicles, contributing an additional five to six million liters to daily consumption.

Furthermore, the imbalance in Iran's refining process, where one-third of products are transformed into mazut and bitumen, exacerbates the shortage of petrol. Official statistics reveal that gasoline constitutes only 28 percent of Iran's refinery products, highlighting the need for modernization akin to refineries in other neighboring countries like the UAE.

Amidst the escalating gasoline deficit, the government has resorted to limited imports of mazut substitutes. However, criticisms have been leveled against the current administration led by President Ebrahim Raisi for a lack of transparency in reporting the volume of gasoline imports.