Mohammad-Sadeq Azimifar made the remarks Monday at the official launch of the instant issuance project for smart fuel cards. He said the country has faced an energy imbalance in recent years due to rapid growth in production.

He said the Oil Ministry’s primary focus is production, but added that the ministry alone cannot effectively influence consumption. Managing demand, he said, requires cooperation and coordination among all agencies.

Production Alone Cannot Fix the Imbalance

Azimifar said no country can resolve an energy imbalance by relying solely on increased production. He cautioned against oversimplifying consumption issues and said the problem must be addressed seriously by examining its underlying causes. Without an accurate assessment of the drivers of rising consumption, he said, effective demand management is not possible.

Referring to measures taken on the consumption side, Azimifar said the company’s approach is a gradual reform of demand management to address the imbalance, adding that actions in this area must be sustained.

He said that over the first 11 months of 1404, consumption declined for most petroleum products. LPG use fell 14% and gas oil consumption dropped 4%. As a result, he said, despite importing nearly $1 billion worth of gas oil last year, the country managed to get through this winter without imports or power outages.

Gasoline Use Down 3% After Price Adjustment

Azimifar also said the share of gasoline dispensed using emergency station cards fell to 25% from 43% following the implementation of a new gasoline program. He added that gasoline consumption growth declined by 3% compared with last year after price adjustments.

To be updated