News ID: 4622
Date: Tuesday 23 September 2025 - 22:48

Refining and Distribution Company CEO warns: Energy imbalance will face dire consequences for the country

Refining and Distribution Company CEO warns: Energy imbalance will face dire consequences for the country
In recent years, the unprecedented increase in demand intensity and the growing and accumulating imbalance between production and consumption have become a major and challenging problem in the areas of economy and national security, placing the downstream sector of the oil industry under unprecedented pressure.

According to Energy Press, Keramat Weiskarami, CEO of the National Iranian Petroleum Products Distribution Company, wrote in a note: It is clear that this major problem is the result of numerous factors that have emerged over time, each of which requires effective attention, correction, and improvement in its place. Considering the available data, a significant portion of the apparent consumption statistics is related to various and irregular components such as smuggling and unconventional distribution outside the fuel network, lack of effective monitoring and control by the relevant authorities, the deterioration of the country’s transportation fleet, the low price of energy carriers and the irrationality of the pricing system, the weakness of technology and low domestic standards for automobile production, the inappropriateness of intra-city and inter-city transportation routes, traffic problems, cultural factors, and of course numerous other factors.
The negative and reciprocal effects of imbalances in some other areas (such as reduced rainfall and water shortages, which lead to reduced electricity production by hydroelectric power plants and, as a result, put pressure on fossil power plants) lead to increased fuel consumption in different seasons of the year. For example, in the case of gasoline, the demand for this product grew by about 7 percent last year; so that on March 29, last year, about 165 million liters of gasoline were distributed nationwide. This demand record reached a level of over 200 million liters on the first day of the 12-day imposed war, but of course, with the round-the-clock efforts of all operational and headquarters units of the Ministry of Oil and the downstream sectors and the refining and distribution industry of petroleum products, and despite the war situation, there was no interruption in the distribution process.

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