According to president.ir, Pezeshkian spoke Tuesday at a national conference on the role of Islamic councils and public participation under the Constitution. He said the government’s recent move does not mean subsidies have been removed, but rather that they are being paid directly to all members of society to prevent rent-seeking and corruption and to ensure fair distribution of resources.

On fuels such as gasoline and diesel, Pezeshkian said the first step is to assure the public that the government will transfer all credits directly and equitably to individuals. Instead of allocating resources to specific groups that contribute to capital outflows through overreporting imports, underreporting exports or declaring unrealistic figures to obtain foreign currency, he said, the government has decided to halt this flawed process at its roots.

Unrealistic decisions push the country toward crisis

Pezeshkian said a 2% increase in the national budget shows the government has compressed its spending as much as possible. He noted that there are expectations for wage increases while at the same time calls not to raise taxes, even though revenue sources are limited and oil sales face sanctions. Without realistic decision-making, he said, the country risks pushing itself toward crisis and then complaining about the consequences.

In the energy sector, Pezeshkian said about 9 million barrels of oil and gas are produced and consumed daily, most of it domestically and some exported with great difficulty. He said a 10% reduction in consumption alone could free up significant resources.

With public participation, he added, major progress is possible. A 10% cut in electricity, water and gas consumption would save the equivalent of hundreds of thousands of barrels of oil and gas each day. A significant share of national resources is wasted because of improper consumption, he said, stressing that reform must begin with individuals themselves.