Over the past two years, the industry has shifted from a supply-focused approach toward integrated and intelligent management of the fuel supply chain, responding to rising domestic demand while seeking to maintain operational stability under challenging conditions. The strategy has focused on using domestic capacity to strengthen the resilience of the country’s energy network against various disruptions.

In refining operations, the main priority was to stabilize feedstock supplies and maximize refinery capacity. Refineries processed an average of 2.324 million barrels per day, while deliveries of crude oil and gas condensate feedstock increased 4%. Stable feedstock supplies, major maintenance at 22 refinery units and the implementation of quality-improvement projects helped maintain base gasoline production at 109 million liters per day.

Beyond increasing the volume of refined products, the industry also pursued higher-quality output. During the first year of the 14th administration, several strategic projects came onstream, including the first section of Phase 2 of the Abadan Refinery development and capacity stabilization project, with a capacity of 1.5 million liters per day; the Abadan Refinery hydrocracking unit; the Shiraz Refinery isomerization unit; a Shiraz Refinery gas oil quality-upgrade project; and the KHT kerosene quality-upgrade project at the Isfahan Refinery.

The projects significantly increased the country’s production of Euro 4 and Euro 5 fuels.

More Than 1,000 Kilometers of New Pipelines

Alongside production growth and quality improvements, expansion and modernization of transportation infrastructure played a key role in distributing fuel efficiently. More than 1,000 kilometers of new pipelines were commissioned, including the 456-kilometer Bandar Abbas-Rafsanjan pipeline, a pipeline branching from the Goreh-Jask line to supply feedstock to the Bandar Abbas Refinery, the 330-kilometer Sabzab-Shazand pipeline and the 220-kilometer Tabriz-Khoy-Urmia pipeline.

The projects reduced reliance on road transportation and connected six major power plants to the pipeline network, helping prevent disruptions in fuel distribution and minimizing operational risks across the liquid-fuel supply chain.

Power Plant Diesel Stocks Hit 3.4 Billion Liters

One of the key achievements of the 14th administration has been an increase in gas oil stocks for power plants. According to data from the Power Generation Information System (PGIS), power plants held more than 3.4 billion liters of gas oil in November 2025, equivalent to more than 90% of their storage capacity.

The stock level was 86% higher than the maximum recorded in 2024 and 6% higher than the maximum recorded in 2023.

Average fuel deliveries to power plants in the second year of the 14th administration increased more than 11% compared with the final year of the previous administration. Average daily gas oil deliveries during winter 2024 were 51% higher than in winter 2023. For the first time, 420 million liters of low-sulfur fuel oil were also supplied to selected steam-powered plants.

The figures indicate that advance planning, expanded delivery capacity, stronger storage and smarter management of power plant fuel supplies have played a key role in maintaining electricity generation.

Curbing Fuel Consumption Through Alternative Fuels

In the non-power-plant gas oil sector, the annual consumption growth rate, which had averaged about 4% in previous years, was halted and reversed.

As a result, the need for imported gas oil fell sharply in 2025. A 4 million-liter-per-day reduction in consumption brought gas oil imports to zero, preventing about $1 billion in imports.

Private Sector Enters Premium Gasoline Market

The supply and distribution of premium gasoline was another area of change. For the first time, the private sector participated in importing and distributing the fuel, creating a new model for its supply and marketing.

The initiative was designed to meet demand from consumers seeking higher-quality fuel while diversifying supply and distribution channels.

Dual-Fuel Vehicle Conversion Accelerates

The CNG sector also gained momentum after $44 million in overdue payments to CNG conversion workshops was settled, allowing existing capacity to become operational.

Production of dual-fuel vehicles rose 210% in 1404 from 1403, while about 90,000 vehicles were converted to dual-fuel operation over the past two years and 25 new CNG stations were commissioned.

Expansion of the sector is expected to reduce gasoline dependence among parts of the transportation fleet while increasing the use of compressed natural gas and helping manage gasoline consumption.

Resilience Tested by Regional Crises

The operational resilience of the National Iranian Oil Products Refining and Distribution Company was tested by two major crises over the past two years: the 12-day war and the third imposed war.

During the conflicts, gasoline demand surged to as much as 200 million liters per day. The company maintained production and managed fuel flows to ensure uninterrupted supplies.

Officials said average gasoline consumption intensity increased by more than 50% during the period. In Tehran province alone, fuel consumption exceeded three times the total consumption of Turkey.

The ability to maintain infrastructure and fuel distribution under such pressure demonstrated the resilience of the country’s petroleum-product supply chain and its capacity to sustain deliveries during emergencies.

Overall, measures implemented under the 14th administration reflect a shift in Iran’s refining and distribution sector toward structural reform, greater use of available capacities and improved operational preparedness.

Private-sector participation in premium gasoline distribution, activation of vehicle-conversion workshops, fuel-consumption management, record levels of power-plant fuel stocks and deliveries, expansion of pipelines for safer and more reliable transportation, tighter oversight of fuel distribution and uninterrupted supplies during crises have combined to improve the flexibility, efficiency and resilience of the country’s refining and distribution network.