Speaking Monday at the Fourth International Conference on Energy Consumption Optimization and Efficiency, Malek Shariati-Niasar said the newly introduced third-tier gasoline rate is strictly a pricing policy and cannot, on its own, curb rising consumption or fuel smuggling.

He said the rate may generate some revenue for the Plan and Budget Organization and the Targeted Subsidies Organization and may reduce the use of station-issued fuel cards, but it will not meaningfully reduce consumption.

Allocating Energy Subsidies by National ID

Shariati, reiterating his support for the government’s overall gasoline plan, said the proposal nonetheless needed more comprehensive review because expected inflationary effects could neutralize its impact.

Pointing to nonpricing tools, he said one option is allocating energy subsidies based on national ID numbers. Currently, fuel subsidies primarily benefit vehicle owners, leaving people without cars unable to access them.

“If subsidies are to be provided, we must ensure they reach eligible individuals — which is not happening today,” he said.