Experts’ opinion on resolving the gasoline imbalance in Iran

According to Energy Press, Alireza Armanmoghaddam, at the meeting “Energy Imbalance; Gasoline Challenges in Iran”, considered the implementation of high-efficiency projects, consumption management, infrastructure development and modernization, governance reform, fleet modernization, monitoring and control through smart fuel card systems, engine optimization, product storage balance in the provinces of the country, outsourcing activities, and using the private sector as effective strategies to deal with the energy imbalance in the country, and stated: “Timely implementation of ongoing projects plays a significant role in reducing the gasoline imbalance.” Stating that in recent years, consumption has increased significantly and production has also increased in the same proportion, but due to excessive consumption, production has lagged behind consumption, he stated: “Worn-out vehicles are one of the factors responsible for the high consumption of gasoline in the country.” Currently, more than 90 percent of motorcycles, 30 percent of private cars, 48 ​​percent of taxis, and 86 percent of minibuses in the country are worn out, he reminded:
The Deputy Executive Director of the National Refining and Distribution Company, referring to the issue of increasing gasoline prices, added: The Ministry of Oil will not play a role in the field of price policies, and the price of products is a sovereign issue that higher organizations decide on, and there is currently no plan to increase gasoline prices.
Arman Moghadam reminded: In 2004, based on the law and with the aim of preventing inflation, the issue of stabilizing prices was raised and the gradual increase in product prices was prevented, but now the government must put a new approach to gasoline on the agenda.
Annual gasoline price increase should be on the agenda
Yaser Mollaei, an economic researcher, also stated that about $30 billion is distributed annually as a subsidy for gasoline, and said: This subsidy is distributed while the government is facing problems in various sectors such as paying salaries to healthcare workers, teachers and other sectors, and this shows the suboptimal use of national resources.
Emphasizing that an annual increase in gasoline prices in line with inflation should be on the agenda, he added: The idea that inflation can be controlled by stabilizing prices is completely wrong and will harm the country’s economy. Therefore, the issue of gasoline price reform should be raised from the perspective of utilizing national resources, because if these national resources are spent fairly on infrastructure development, we will witness very favorable events in the field of infrastructure development in the country.
Stating that Iran is a paradise for energy optimization and carbon reduction projects, the economic researcher noted: Over the years, and based on incorrect policies, the intensity of the country’s energy consumption has increased significantly, and this can provide an opportunity for international investments.
Mollaei continued: Investment in the use of electric vehicles in the country’s passenger and taxi network, such as Snap, taxi and public transportation companies, will play a significant role in reducing the country’s energy consumption, as most of the energy is wasted in citizens’ traffic.
Raising gasoline prices without developing the country’s public transportation infrastructure is illogical. Shahabuddin Metaji, former director of integrated planning at the National Petroleum Products Refining and Distribution Company, also pointed to the sharp increase in gasoline consumption in the country and said: “If a correct definition for urban life and transportation in cities is not designed, urban transportation will be based on private cars, which will lead to traffic jams, noise pollution, and a decrease in people’s well-being.”