Pezeshkian: Iran no longer needs gasoline imports after curbing consumption
Iran no longer needs to import gasoline after government measures to curb fuel consumption and public cooperation, President Masoud Pezeshkian said, adding that the imports would otherwise have cost $12 billion.
The government prioritized energy conservation and consumption management to prevent further problems in the energy and fuel sectors amid economic sanctions, Pezeshkian said, according to IRNA.
Speaking at the eighth meeting of the government’s Information Council on Sunday, he said substantial savings had been achieved with public cooperation.
Since late February, when a US-Israeli coalition launched a 40-day war, Iran has been operating under wartime conditions and facing a maritime blockade from the south. The blockade aims to reduce Iranian oil exports to zero and deplete government revenues. Iran has also been subject to decades of Western sanctions over its nuclear activities.
Pezeshkian said all revenue generated by fuel price increases, along with savings from consumption management, would be returned to the public. He called for greater use of media outlets to encourage public participation in energy conservation, reduce gasoline consumption and strengthen national unity and social cohesion.
Iranian refineries produce about 110 million liters of gasoline a day, compared with average daily consumption of 135 million liters. To narrow the gap, the Oil Ministry ordered several petrochemical plants to allocate part of their capacity to gasoline production. The move added 20 million liters to daily output, taking total production to 130 million liters.
In early September, the government raised prices for gasoline purchased outside monthly quotas for the second time in less than a year and adjusted the monthly allowances.
Gasoline is sold at three rates. Each vehicle receives 60 liters a month at 15,000 rials per liter, followed by another 50 liters at 30,000 rials per liter. Additional purchases are unrestricted but cost 100,000 rials per liter.
Abbas Pazouki, deputy for communications and information at the office of First Vice President Mohammad Reza Aref, said on Thursday that gasoline imports would stop on October 23. He also quoted Pezeshkian as saying the government had spent between $2 billion and $3 billion on gasoline imports since the current Persian year began on March 21.
The government has also drawn on strategic gasoline reserves this year to meet rising demand.
CNG consumption rises
Meanwhile, daily compressed natural gas (CNG) consumption has risen by 14% following the latest gasoline price adjustment, according to Karamat Veis-Karami, head of the National Iranian Oil Products Distribution Company.
Average daily CNG consumption increased to about 16.7 million cubic meters in Mehr from 14.7 million cubic meters in Mordad, a rise of 2 million cubic meters, Veis-Karami said on Sunday, according to IRNA.
The increase is equivalent to replacing nearly 2 million liters of gasoline a day, helping manage fuel consumption and reduce pressure on gasoline supplies, he said.
Following two rounds of fuel price adjustments, the government has also moved to expand the conversion of vehicles to dual-fuel systems, with CNG conversion centers resuming operations.