Iran faces worsening gasoline crisis as daily shortfall hits 10 million liters
Iran is grappling with a severe gasoline shortage, with a daily deficit of 10 million liters and long queues at fuel stations across several cities.
Key Takeaways
AIIran's gasoline crisis has deepened, with growing queues at fuel stations in several cities and a daily shortfall of 10 million liters over the past five months.
Mohammad Sadegh Azimi Far, Iranian Deputy Oil Minister and CEO of the National Iranian Oil Refining and Distribution Company, acknowledged that average gasoline consumption has reached 132 million liters per day, while production averages only 122 million liters.
In a televised interview on Sunday evening, Azimi Far explained that the daily gap was supposed to be covered by imports, warning of continued imbalance between supply and demand.
He noted that if consumption remains at current levels without an increase in production, gasoline imports will rise and foreign currency reserves will be depleted.
Meanwhile, Mohammad Jafar Qaem Banah, Deputy President for Executive Affairs, confirmed that domestic production does not meet demand and that Tehran is struggling to import gasoline due to the U.S. maritime blockade.
President Masoud Pezeshkian also pointed out that the government lacks the resources needed for imports, amid restrictions and declining local stocks.
Yasser Mirzaei, Deputy Head of the Energy Efficiency Organization, attributed part of the crisis to the impact of the war in Ukraine, noting that Russia has reduced gasoline exports and Belarus has stopped supplying previous quantities to Iran.
Despite the Iranian Oil Ministry denying a gasoline shortage and claiming the queues are due to increased demand, Azimi Far stressed that consumption has not grown this year compared to last, undermining the idea that higher demand is the main cause of the crisis.
Reuters quoted Iranian government sources as saying that tighter U.S. sanctions and the maritime blockade on oil exports are increasing economic pressure, with warnings that gasoline stocks may last only two more months.
The fuel crisis comes amid broader challenges facing Iran's energy and foreign trade sectors, as the U.S. intensifies measures to restrict its access to international markets and financial transactions.