The amount of gasoline and diesel consumption in Iran during the summer (June 22-Sept. 22) increased by 20% and 9% respectively compared with the same period of last year, the National Iranian Oil Refining and Distribution Company’s deputy for oil products supply said.
“An average of 105 million liters of gasoline and 106 million liters of diesel were consumed daily during the three-month period,” Peyman Jazayeri was also quoted as saying by ILNA.
This is while last summer, motorists used 87 and 99 million liters of gasoline and diesel respectively, he added.
The figures come amid statements by government officials that Iran might be forced to resume gasoline imports after it had achieved self-sufficiency in fuel production in the past.
Iran implemented many plans in the past decade to ramp up gasoline production at its old and new refineries after the United States imposed sanctions on gasoline import.
The country stopped importing gasoline in 2019 when the development plan of the Persian Gulf Star Refinery was completed, which made the country self-sufficient in fuel production.
Gasoline demand in Iran dropped to all-time lows of less than 75 million liters per day in 2019 when the government announced fuel price hikes.
However, the current price of gasoline in Iran is around a tenth of prices charged in neighboring countries, causing a major surge in fuel smuggling across the borders. That comes as the government has indicated it has no plans to increase fuel prices.
All refineries in Iran are currently operating at full capacity and output cannot rise any further. This is while gasoline consumption is estimated to rise by at least 7% in 2023.
Close to 800,000 new low-quality cars have been added to Iran’s transportation fleet, whereas old gas guzzlers are not sent to the junkyard. If the current trend of consumption were to continue, the country will surely face problem in meeting domestic demand.
