Speaking Monday at the fourth International Conference and Exhibition on Energy Consumption Optimization and Efficiency, Ahmad Zera’atkar said energy efficiency plays a decisive role in energy security, economic competitiveness and environmental quality. “Iran’s energy challenge is not limited to production,” he said. “We face seasonal gas imbalances, high consumption intensity, resource losses across the supply chain, and financial and environmental constraints. Continuing the past path and maintaining a production-driven view is neither economically nor technically feasible, nor compatible with environmental requirements.”

He highlighted major achievements in flared-gas management, noting that although the Seventh Development Plan required the Oil Ministry to collect only 1.5 billion cubic meters of flared gas in its first year, ongoing large-scale projects have increased that figure to 3.3 billion cubic meters.

Zera’atkar also announced the signing of 12 major flare-gas recovery contracts. He said more than 3 billion additional cubic meters of flared gas will enter the production cycle by the end of 2026, reducing pollution while generating millions of dollars in revenue and providing stable feedstock for petrochemical plants.

Fuel-Consumption Reforms and Curbing Smuggling

Detailing recent reforms in the transportation sector, Zera’atkar said pricing changes in the mining sector, heavy transport and self-supplied power plants have cut diesel consumption by 5 million liters per day.

He added that by digitizing the fuel-distribution chain, authorities identified 66,000 invalid operating permits and more than 2,000 smuggling-linked fuel cards.

He also cited ongoing programs including converting 8,000 vehicles to dual-fuel systems, producing 55,000 factory-built CNG vehicles, replacing 14,000 worn-out fuel tanks and introducing 20,000 electric motorcycles.

Gas-Network Digitalization, Stronger Infrastructure Resilience

Zera’atkar pointed to the launch of the Integrated Gas Network Analysis System, which processes data in real time and has improved the speed and reliability of responses to customers.

He said the implementation of an integrated transmission-line management system, completion of Tehran Province’s gas-facility reinforcement plan and establishment of a stable communications network among remote terminal units (RTUs) have enhanced the resilience of the national gas grid, particularly in the capital.

He described the record daily gas production, transmission and distribution level of 880 million cubic meters as the result of advanced instrumentation and data-driven governance.

Energy-Governance Reform and Reduced Government Control

Zera’atkar said the Oil Ministry is moving away from direct involvement in operations and toward governance guided by higher-level policy documents.

He cited the new regulations for natural gas service companies, two newly drafted contract models and the implementation of energy-efficiency projects under the Economic Council as measures that will make private-sector investment more transparent and predictable.

A New Tariff System to Support Fair Energy Subsidies

He said the new energy-tariff system—developed after 13 revisions and processing of 1.5 billion data points—is designed to encourage conservation, support low-consumption households and distribute energy subsidies more fairly.

Zera’atkar added that these measures indicate the emergence of a new paradigm in energy policymaking: one in which flared gas becomes an economic feedstock, the gas grid becomes smart, governance moves away from ad-hoc decisions, and efficiency accounts and savings-certificate markets create a stable financial base for energy-efficiency projects.

He concluded by emphasizing that effective cooperation among agencies—including the Oil Ministry, the Energy Ministry and the Ministry of Industry, Mine and Trade—along with coordination with Parliament and the private sector, is essential to advancing the country’s new energy-efficiency path.