Iran to reduce gasoline subsidies to address energy imbalance

The Iranian government has confirmed plans to reduce gasoline subsidies and reform energy consumption to address national energy imbalances. Mohsen Hajimirsai, head of the President's office, stated that reducing quotas is a finalized decision aimed at managing the gap between domestic production and demand, noting that current production levels are insufficient to meet daily and monthly needs.

While the government is considering pricing policies, officials noted that such decisions involve complex security, social, and economic studies. The current strategy involves limiting consumption to essential uses to compensate for production damage and stabilize the supply. For those exceeding their allocated quotas, higher prices may be implemented.

President Masoud Pezeshkian has emphasized that energy conservation must begin within government institutions, specifically by reducing the use of official vehicles and minimizing administrative travel. Seyyed Esmail Saghab Esfahani, head of the Energy Optimization and Strategic Management Organization, highlighted that addressing energy imbalances and increasing production are primary concerns for the administration, which aims to involve public participation in solving these structural issues.