16 September 2026 - 14:04
  • News ID: 2790321
MP: New refineries alone won't fix energy imbalance

SHANA (Tehran) – A member of parliament's Energy Committee said Wednesday that expanding Iran's refining capacity is essential, but cautioned that boosting production alone cannot resolve the country's energy imbalance without a parallel push to manage consumption.

Mansour Shokrollahi said increasing the country's refining capacity would strengthen energy security and reduce Iran's vulnerability to fuel imports, particularly amid currency constraints and external pressure. Higher domestic output of gasoline and diesel, he said, would help prevent the outflow of foreign currency reserves and bolster the economy's resilience.

He said two new refineries with a combined capacity of 180,000 barrels per day are expected to join the national refining network. If they reach full operational capacity as planned, their added gasoline and diesel output could help narrow the gap between production and consumption. He described the projects as a strategic asset rather than merely industrial ventures, saying they should be viewed as part of the country's broader energy security policy.

Shokrollahi said the energy imbalance is the product of years of misalignment between rising consumption and lagging production capacity, adding that a problem built up over years cannot be solved overnight by opening a handful of refining projects. If consumption continues to grow at its current pace, he warned, new capacity will gradually be absorbed by rising demand.

He called on the government to pair refinery expansion with a serious, time-bound plan to manage consumption. Priorities for the Oil Ministry and related agencies, he said, should include retrofitting fuel-inefficient vehicles, retiring aging cars, expanding public transportation, increasing the share of compressed natural gas (CNG) in the fuel mix, and genuinely enforcing fuel-efficiency policies.

Shokrollahi said parliament supports expanding refining capacity and achieving fuel self-sufficiency, but stressed that policymakers should not address the imbalance from the supply side alone — investment in reducing consumption must happen simultaneously.

News ID 2790321

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