As temperatures plummet across Iran, domestic gas consumption has surged, pushing daily usage in the household and small-scale commercial sectors to 625 million cubic meters.
The National Gas Company (NIGC) has allocated 72 percent of the country’s gas supply to households to meet winter heating demand, highlighting the mounting pressure on the nation’s energy infrastructure, Shana reported.
Iran’s energy system is heavily reliant on natural gas, the country’s primary and often sole fuel source for residential heating, commercial units, small industries, and increasingly for power generation, petrochemical production and agriculture.
This dependence leaves the gas network particularly vulnerable during the cold season. To maintain balance, NIGC prioritizes household supply while ensuring power plants continue to operate and petrochemical units—key earners of foreign currency—remain active.
Saeed Tavakoli, CEO of NIGC, explained that the network receives approximately 850 million cubic meters of gas per day during peak winter, with 435 million cubic meters forming the baseline consumption for households, commercial units and small industries. Once this baseline is exceeded, the company is forced to impose restrictions on larger industrial users.
Last Thursday, Tavakoli reported, 625 million cubic meters of gas were consumed by these prioritized sectors, accounting for 72 percent of the total daily supply.
Forecasts from the Deputy Oil Minister suggest that by the height of winter, this figure could reach 80 percent, leaving only 20 percent for major industries, power plants, and operational users. When residential and small commercial consumption dominates the network, larger consumers are compelled to switch to secondary fuels such as diesel or mazut, which carry high levels of pollution.
Energy analyst Hashem Oraee highlighted that Iran consumes over 240 billion cubic meters of gas annually, with roughly one-third allocated to power plants. Despite this, the average efficiency of thermal power plants remains low, converting less than 37 percent of primary energy into electricity, with a further 25 percent lost in transmission and distribution.
Regulatory Measures
To curb consumption, NIGC has implemented a series of regulatory measures. Monitoring of gas use in government offices began in early autumn, with warnings and supply cuts issued to high-consuming departments—including units within the Ministry of Oil. Per the Cabinet-approved guidelines, office heating must not exceed 20°C, with penalties enforced for noncompliance.
Additionally, the government has introduced a four-tier natural gas pricing system, replacing the previous 12-step model. This system calculates charges based on average city consumption, aiming for fairness and simplicity. Households consuming up to 50 percent of the city average benefit from the first tier with supportive rates, while excessive users fall into higher tiers. Only about two percent of the most intensive consumers reach the fourth tier. With this reform, consumption patterns across Iran’s regions are now categorized into over 1,300 urban climates, allowing for more precise regulation.
The current winter demonstrates the delicate balancing act required to keep households warm while sustaining industrial output. With the majority of gas directed to residential and small-scale users, Iran’s energy authorities continue to manage distribution carefully, knowing that even minor surges in consumption can ripple across power plants, petrochemical production and broader industrial operations.
