NIORDC faced a complex set of challenges at the start of the administration, including fuel imbalances, delayed refinery overhauls, sanctions pressure and regional tensions affecting supply and distribution. The conditions required a serious policy rethink on production, quality and demand management to ensure the country would not face shortages during peak consumption and the cold season.

Alongside raising refining capacity and improving product quality, the company implemented demand-management measures and expanded fuel-transfer infrastructure, easing pressure on the distribution network and power plants. According to the CEO, key actions included increasing gasoline and diesel output, executing quality-upgrade projects, reforming financial relations between refineries and the government, moving toward participatory governance and digitalizing industry data.

Mohammad-Sadeq Azimifar detailed the early conditions, strategic priorities, operational achievements, projects coming online and future plans, describing how interagency coordination and human capital helped put fuel supply on a stable path.

Initial Conditions

“At the outset of the 14th administration, we inherited a fuel imbalance driven by past consumption trends, placing national fuel supply in a fragile position,” Azimifar said. “We began work in Shahrivar 1403, at the gasoline consumption peak, with depleted stocks in northern Iran. On the eve of the cold season, diesel storage at power plants was about 50% lower than a year earlier. Overhaul schedules at many refineries had also been postponed, posing a major risk to supply stability.”

He added that beyond sanctions, wartime conditions and regional tensions created additional risks, including attacks on facilities during a 12-day conflict, consumption shocks and tight financing constraints. Inadequate regulation of financial ties between the refining industry and the government had also created significant liquidity pressures.

Strategic Approaches

Azimifar said the company shifted from a production-only focus toward demand management, without neglecting maintenance or capacity growth. Human capital development became a top priority, alongside governance reform and clearer financial frameworks. A strategic roadmap was drafted, with key performance indicators established to benchmark progress against past periods and national development targets.

Production Performance

Comparing the first 16 months of the 14th administration with the final 16 months of the previous government, refinery feedstock rose about 4% to an average 2.37 million barrels per day. Average gasoline production increased by roughly 3 million liters per day, while diesel output rose nearly 4%.

At the Persian Gulf Star Refinery, gasoline production grew by 2 to 3 million liters per day through equipment upgrades, higher feedstock intake and process optimization, reaching more than 45 million liters per day in winter 1404, up from about 38 million liters at the administration’s start.

Nationwide gasoline output now exceeds 110 million liters per day. Azimifar noted that production gains coincided with 22 major overhauls at 90% of refineries. As an example, the long-delayed RFCC overhaul at the Arak Refinery was completed without disrupting fuel supply.

Quality Upgrades

Four quality-upgrade projects worth more than $875 million came online in the past 16 months, including hydrocracking at the Abadan Refinery, isomerization at Shiraz, Shiraz’s gasoil desulfurization (DHT) unit and a KHT unit at Isfahan. These projects increased the share of Euro 4 and Euro 5 gasoline and diesel by an average of 3% compared with the last 16 months of the previous administration.

For the first time, NIORDC also delivered low-sulfur fuel oil to power plants. In 1404, more than 420 million liters were supplied to four steam power plants near Tehran, Alborz, Arak and Isfahan.

Demand Management

Azimifar said NIORDC adopted a mix of pricing and nonpricing policies. In nonpower-plant diesel, annual consumption growth averaging 4% was halted and reversed. Average daily gasoil imports fell from 5 million liters in 1403 to near zero in 1404.

In gasoline, after years without effective demand measures, a three-tier pricing plan based on gradualism was implemented. The share of station fuel-card usage — seen as a major source of opacity and leakage — declined from 43% to 26%, encouraging personal card use and improving transparency.

Premium gasoline imports and distribution were introduced, with private-sector participation breaking the government’s monopoly across the supply chain.

Vehicle Fuel Conversion

NIORDC cleared about $44 million in arrears to CNG conversion workshops, accelerating the conversion of single-fuel vehicles. Dual-fuel conversions rose 46% compared with the previous period. LPG consumption fell about 11% under tighter monitoring. Agreements were also finalized to replace 20,000 aging gasoline motorcycles with electric models.

Pipeline Expansion

Nearly 1,000 kilometers of pipelines were commissioned, raising the network from 14,000 km to more than 15,000 km. Projects included the Bandar Abbas–Rafsanjan line, the Sabzab–Shazand crude line, a Bandar Abbas refinery feedstock branch from the Jask pipeline and connections for six power plants, enhancing delivery reliability, especially in northern Iran.

Digital Transformation and Workforce

A new Center for Growth and Evaluation of the Refining Industry (MANSA) was launched to certify professional competencies. A refining-sector corporate venture capital (CVC) license is being pursued, and a central monitoring hub is aggregating and analyzing value-chain data. Technology initiatives are underway with think tanks and universities.

Winter Fuel Supply

Coordinated planning with the National Iranian Gas Co. and the Energy Ministry led to a record 3.4 billion liters of diesel stored for winter. Liquid fuel deliveries to power plants rose 4% year over year. Despite a one-day record consumption of 133 million liters of diesel amid cold weather and gas constraints, no power disruptions occurred.

Iran supplied winter fuel needs without imports. In Dey, average daily diesel deliveries reached a record 59 million liters, with no reported shortages in transport, power generation or major industries.

Impact of Three-Tier Gasoline Pricing

Consumption growth during the postimplementation period was nearly halved compared with previous years, indicating the plan’s effectiveness. Azimifar emphasized the need for continued gradual policies.

Projects and Outlook for 1405

Recently inaugurated projects include Shiraz Refinery’s DHT unit. Additional units at the Tehran Refinery and a wastewater treatment facility are set to come online. Planned milestones for 1405 include stabilizing output at the Adish Refinery, commissioning the Mehr Persian Gulf Refinery, completing Tehran’s gasoline quality-upgrade plan and launching Isfahan’s RHU unit.

Message to the Public

“Despite hardships and constraints, we believe positive steps can be taken to improve national conditions,” Azimifar said. “Our colleagues have shown they can sustainably fulfill their core mission: securing the country’s fuel supply.”