8 July 2026 - 10:58
  • News ID: 2297572
New energy plan rewards consumers for cutting fuel use

SHANA (Tehran) - The head of the Energy Optimization and Strategic Management Organization announced that the government is shifting its fuel consumption policy from price increases to a consumer incentive system.

Speaking at a meeting with the Vice President for Science, Technology and Knowledge-Based Economy, Esmaeil Seqab-Esfahani said previous attempts to reduce fuel consumption relied on sudden price hikes, which caused significant social consequences. Under the new approach, fuel prices will remain unchanged, while households and industries will receive direct financial rewards for reducing their energy use.
He emphasized that despite ongoing efforts to expand energy production, growing demand means that increasing supply alone is no longer sufficient. Improving energy efficiency has therefore become a national priority.
The government has also introduced a new Energy Optimization Fund to support efficiency projects. Industries will be able to receive advance financing, backed by guarantees, to upgrade equipment without facing cash-flow constraints. The investment will later be repaid through the savings generated by reduced energy consumption.
According to the official, reducing gasoline consumption by just one liter per vehicle each day could eliminate the need to import around 20 million liters of gasoline daily. While public awareness and behavioral changes are important, he stressed that the biggest gains will come from improving the efficiency of technologies, vehicles, and buildings.
During the meeting, the Vice President Hossein Afshin highlighted the government's "First-Time Innovation" program, which enables knowledge-based companies to deliver advanced energy-saving solutions—including artificial intelligence, low-energy equipment, and other innovative technologies—to major industries such as steel, petrochemicals, and food production.
Under the initiative, innovative products and services being deployed for the first time in Iran are exempt from lengthy administrative procedures and competitive tender requirements, allowing companies to sign direct contracts with industrial clients.
He added that up to 50% of the financing for each energy optimization project will be provided through low-interest loans from the Vice Presidency and the Innovation and Prosperity Fund, while the remaining half will be financed by the participating industry.
Based on government estimates, the program could save between 1.5 and 2 billion cubic meters of natural gas annually, significantly improving the country's energy efficiency.
News ID 2297572

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