Emad Rafiei, consumption affairs manager at the National Iranian Oil Refining and Distribution Company, said Monday that the continuing gap between gasoline supply and demand threatens the stability of the country's energy balance. Speaking on the live state TV program, Rafiei said gasoline consumption is climbing sharply as economic activity returns to normal and summer travel begins, putting the country on track to approach last year's record levels.

Rafiei said the shortfall between domestic production and consumption has placed heavy pressure on imports. Direct gasoline imports last year averaged 13 million liters per day, he said, costing the country's foreign currency reserves about $3 billion.

$6b Import Bill

When the cost of importing reformate and petrochemical additives is included, the total foreign currency cost of securing gasoline supplies reaches $6 billion, Rafiei said. The government covers that cost directly in foreign currency, rather than through subsidies, to keep gasoline available to the public.

Rafiei noted that the highest consumption levels in the Iranian year 1404 (which began in March 2025) came during two periods of conflict — a 12-day war and a 40-day war. During the 12-day war, daily consumption hit 197 million liters, breaking a 30-year record, he said. During what he called the "third imposed war," consumption reached 193 million liters in a single day.

Rafiei traced the roots of the imbalance back to 2020, when Iran exported $3 billion worth of gasoline, making it the country's top export commodity at the time. Today, he said, the foreign currency balance in that sector has swung by $9 billion compared with that year. He cited price stabilization in recent years, reduced incentive to use public transportation, and a lack of fuel diversification as key drivers of the imbalance.

Rise in Bi-Fuel Vehicle Conversions

Rafiei said the number of gasoline vehicles converted to run on compressed natural gas as well rose from 21,000 in the Persian year 1403 to 67,000 in 1404, and the company plans to push that figure past 100,000 conversions this year.

He said 2 quadrillion rials (roughly $2 billion) have been allocated to settle payments owed to CNG contractors, but acknowledged that public reluctance to use CNG remains a core problem. CNG usage has fallen from 24 million cubic meters per day to 15 million in recent years, he said.

Addressing concerns among drivers about converting single-fuel vehicles, Rafiei said fourth-generation CNG conversion kits now being installed have resolved earlier technical concerns. He added that liquefied petroleum gas will be formally added to the national fuel mix within two weeks as part of the diversification effort.

27 EV Charging Stations Installed at Gas Stations

Rafiei said a permit process allowing electric vehicle charging stations at gas stations, aimed at supporting electric and hybrid vehicles, was introduced in 1404. Over the past year, 323 permits have been issued and 27 charging stations installed at gas stations nationwide.

He closed by stressing the importance of managing fuel use among public and app-based taxi fleets, noting that 77% of taxis run on gasoline alone. Given their high mileage and fuel consumption, electrifying that fleet would meaningfully cut fuel use, he said.