Iran Sees Early Gasoline Consumption Drop, Long-Term Impact Unclear – Minister

Iran Sees Early Gasoline Consumption Drop, Long-Term Impact Unclear – Minister
(Saturday, December 27, 2025) 17:17

TEHRAN, Dec 27 (NIPNA) – Iran’s new gasoline policy has led to an initial reduction in fuel consumption, but authorities say it is too early to draw firm conclusions, Petroleum Minister Mohsen Paknejad said on Wednesday.

Paknejad, speaking on the sidelines of a cabinet meeting, said that during the first week of implementing the new scheme, gasoline consumption fell by 9 million liters per day. The policy encourages the use of personal fuel cards rather than traditional station cards, aiming to curb overall demand.

“From the start of the scheme until Dec. 21, gasoline dispensed through station cards fell by 24 million liters daily. Of this, 15 million liters were transferred to personal cards, leaving a net reduction of 9 million liters,” Paknejad said. He emphasized that longer-term data would be needed to assess the policy’s full effects.

Legal Victory in London

On the international front, Paknejad confirmed that legal efforts regarding the seizure of the Iranian pension fund’s London property were successful. Appeals by Iran were upheld by U.K. courts, and the case will be reviewed.

Gas Production and Power Supply

Iran has achieved record gas injection into the national network, Paknejad said, noting that winter demand for residential, commercial, and industrial consumption will prioritize gas distribution, sometimes limiting supply to power plants. “Some of the shortfall at power plants will be offset with liquid fuel, for which conditions are favorable this year,” he added.

Fuel Card Transfers and Price Outlook

The minister also outlined plans to enable the transfer of gasoline quotas from fuel cards to bank cards through a “switch” mechanism, with implementation expected in the coming months.

Regarding gasoline price adjustments, Paknejad said a government committee would evaluate the need for increases based on market conditions, and no immediate rise is expected.

Oil Sales and Development Projects

On Iran’s oil sales in Asia, Paknejad refrained from commenting on market dynamics, noting that budget projections are based on expert assessments and global price trends. He added that discounts on oil sales have declined since September last year.

Paknejad also reassured that development of the Azadegan oil field is ongoing, with current production at 230,000–240,000 barrels per day. A finalized contract will accelerate development further.

Addressing reports of 50 million barrels of Iranian oil “floating at sea,” Paknejad said these shipments are part of regular logistics and not indicative of unsold stock.

Public Response to Multi-Vehicle Declaration System

The ministry has received more than 450,000 voluntary registrations in a new system for owners of multiple vehicles to declare one car for fuel quota allocation. Motorcycles are not subject to any restrictions, he noted.

 


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