Economy

Iran’s $180 Billion Energy Burden

Iran’s $180 Billion Energy Burden
Iran’s $180 Billion Energy Burden

Iranian President Masoud Pezeshkian has warned that the country’s current level of energy consumption — equivalent to $180 billion annually in gasoline, gas, and oil — is unsustainable and must be addressed through structural reform and national cooperation.

According to the Oil Ministry’s news website Shana, Pezeshkian stated that since the first day his administration took office, it has faced multiple overlapping crises but remains committed to overcoming them through unity and scientific decision-making.

“We are inheritors of a system that takes time and effort to fix,” he said, emphasizing that disorganization and unchecked expansion in past years have led to serious financial strain. “We expanded structures in all sectors without considering limited resources and made decisions that should not have been made. Today, we are even struggling to pay our staff salaries.”

The president described restructuring and downsizing government institutions as not merely a political choice but a national necessity.

Highlighting the scale of the energy challenge, Pezeshkian said Iran consumes the equivalent of $180 billion in gasoline, gas, and oil each year — a burden he called unmaintainable for the economy.

He added that to meet the high demand of certain energy-intensive sectors, power and gas supplies to factories are often cut, disrupting production and employment.

“When a factory shuts down, it means lower production, reduced income for the country, and higher inflation,” he noted.

Pezeshkian urged collective action, calling on all institutions and citizens to cooperate in rational energy management and structural reform.

“We can overcome these problems if we stand together, put aside differences, and act scientifically,” he said, reiterating that the government’s priority is to correct long-standing inefficiencies and restore economic stability.