Iran Plans Petrol Quota Cuts as 15 Million-Litre Daily Shortfall Fuels Price Rise Fears
Updated
Updated · Financial Times · Aug 25
Iran Plans Petrol Quota Cuts as 15 Million-Litre Daily Shortfall Fuels Price Rise Fears
3 articles · Updated · Financial Times · Aug 25
Summary
Iran plans to cut petrol quotas and may charge more for use beyond allocations after officials said the country is short 15mn litres a day against demand of 135mn.
Long queues have formed at Tehran petrol stations as a US naval blockade in place since July 14 curbs imports, while US-Israeli strikes earlier in the war damaged refining capacity.
Scott Bessent said Washington is widening secondary sanctions on Iran’s trading partners, part of a new US “economic warfare” push that adds pressure on fuel supplies and the broader economy.
IR2mn to the dollar and nearly 90% inflation have made any fuel-price move politically risky; a Kerman pilot was halted within hours, reviving memories of deadly 2019 protests.
Iran, which still subsidizes petrol at IR15,000 to IR50,000 a litre for its 90mn people, says the system is no longer sustainable as war disruptions drain reserves and state finances.
Will Iran's desperate fuel rationing spark a nationwide uprising, or can Tehran secure a secret shipping deal to avert total collapse?
Could the devastating blockade on Iran inadvertently force a radical shift toward alternative energy, bypassing traditional fuel dependency altogether?
Iran’s 2026 Energy Emergency: How a 14–23 Million Liter Daily Gasoline Gap Sparked Economic and Political Turmoil
Overview
Iran’s 2026 fuel crisis is the result of decades of underinvestment and outdated energy infrastructure, leaving the country unable to refine enough gasoline for its needs. When the US and its allies launched military strikes and enforced a naval blockade, the Strait of Hormuz was closed, cutting off Iran’s oil exports and government revenue. This triggered a severe gasoline shortage, forcing the government to reduce fuel quotas and attempt unpopular price reforms, which sparked public panic. The crisis also disrupted global oil and fertilizer markets, threatened food security, and eventually pushed the US and Iran into fragile negotiations mediated by Pakistan.