Shahraki warned that continued growth in the consumption of petroleum products, particularly gasoline and diesel, could threaten energy security, economic stability and the government’s fiscal sustainability.

He emphasized that energy governance must move beyond short-term, sector-specific approaches and focus on structural, data-driven reforms that serve the country’s long-term interests. According to Shahraki, even major energy producers face imbalances when energy consumption rises faster than efficiency gains.

He identified several key factors behind the current situation, including an aging transportation fleet, low fuel efficiency in domestically produced vehicles, inefficient fuel allocation, underutilization of alternative fuels and the diversion of subsidized fuel into smuggling networks.

Shahraki said efforts to combat fuel smuggling should be viewed not only as a law enforcement issue but also as part of broader energy governance reform. He noted that increased use of personal fuel cards in recent years has improved transparency, strengthened fuel-tracking capabilities and reduced opportunities for fuel diversion.

To curb fuel consumption, he called for a greater focus on low-cost, non-price measures, particularly expanding compressed natural gas (CNG) use. While Iran’s daily CNG production capacity is estimated at 45 million cubic meters, actual consumption stands at about 16 million cubic meters, leaving roughly 29 million cubic meters of unused capacity that could help reduce gasoline demand.

He also urged authorities to prioritize the expansion of dual-fuel vehicle fleets, CNG infrastructure, support for station operators, payments to private-sector vehicle conversion companies and greater use of small refinery capacity. In addition, he said targeted expansion of liquefied petroleum gas (LPG) use in public transportation and service vehicles could diversify the country’s fuel mix and strengthen energy security.