According to president.ir, Masoud Pezeshkian, speaking Wednesday, October 14 at a meeting reviewing fuel consumption optimization and management, stressed the need for better cross-sector coordination, continuous oversight, identification of bottlenecks where resources are lost, and careful follow-up on assigned responsibilities. He called for consumption-management programs to be turned into executable, measurable, data-driven action.
Cutting consumption by reforming distribution
The meeting heard a report on efforts to reorganize the fuel distribution system, target the distribution of petroleum products, and prevent misuse of fuel cards.
According to the report, these measures are expected to cut fuel consumption by roughly 3 to 5 million liters per day. Figures presented at the meeting also showed fuel imports this October down 58 percent from the same month last year.
Stressing the need for close monitoring of fuel supply, transfer and consumption, Pezeshkian said: "The volume consumed, wasted and diverted out of the official distribution network must be clearly identified, and the source of any deviation in this chain must be traced."
He added that sound management, transparent information and effective action against violations can help close the loopholes that enable smuggling, prevent waste and reduce the energy imbalance.
Fairness in subsidies at the heart of consumption management
The president said the government's aim in reforming energy subsidy mechanisms is not to raise revenue. The gains from managing consumption, cutting waste and distributing subsidies fairly, he said, should be spent on supporting low-income groups and improving the economic situation of disadvantaged households.
Noting the need to explain the reforms to the public, he said: "These policies should not be viewed solely through the lens of price realignment. The main goal is fairness in distributing national resources and giving people an equitable share of the country's capacities and wealth."
Pezeshkian stressed the responsibility of the media and executive bodies in explaining these policies, and called for the public interest and the needs of disadvantaged groups to take priority in decision-making.
Reforming gas subsidy allocation
Pointing to the need to revisit how gas subsidies are allocated, the president called for a fair mechanism through which households benefit from state support.
Asking why those who own several properties should enjoy multiple benefits while some households do not own even one, he urged reform of the subsidy system based on clear criteria and social justice.
He said eligibility for subsidized quotas must be rule-based, and that consumption above the allotted quota should, within legal regulations and approved mechanisms, be priced in line with actual cost.
Saying the government accepts the discontent that curbing disproportionate privileges may cause, he stated: "What must not happen is low-income groups being dissatisfied with how public resources and support are distributed."
Citing the principles of governance of Imam Ali (peace be upon him), he also stressed that the public interest takes precedence over the interests of privileged groups, saying the satisfaction of the general public can outweigh the discontent of particular groups, and that public policy must therefore serve the majority.
Combating smuggling and preventing diversion of subsidized resources
Pezeshkian described combating fuel smuggling and preventing subsidized products from being diverted from their designated uses as requirements of energy consumption management, and called for targeted action against offenders.
Stressing the need to identify those involved in fuel smuggling, he called for restricting their access to subsidized quotas, including by cancelling or blocking their fuel cards, once a violation is established and in accordance with regulations.
Calling for a continuous, data-driven monitoring system across fuel supply, transfer and consumption, he said: "It must be known how much fuel is consumed in the country, how much is wasted and how much leaves the official distribution network."
He added that the source of any deviation in the distribution chain must be identified, and that by closing the loopholes for smuggling and preventing waste, the ground can be laid for reducing the energy sector's imbalance.
Pezeshkian said: "All the benefits from reduced consumption and waste prevention must go to the target population, and no government body should claim any right to these resources. They belong to the people and must be spent on the designated path of supporting eligible groups."
Organizing fuel quotas for legal entities
Stressing the need to organize fuel consumption across sectors, the president called for settling the status of legal entities and revisiting how subsidized quotas are allocated to them.
He said legal entities, regardless of title or type of activity, must be regulated under clear criteria, and that allocating subsidized gasoline to them is unnecessary.
Pezeshkian also stressed revisiting the allocation of subsidized diesel to non-essential uses, and called for identifying unjustified uses and reforming quota allocation mechanisms within legal regulations.
Transparency in public transport fleet fuel use
The president described organizing fuel consumption by the public transport fleet, particularly intracity buses and minibuses, as another essential part of reforming consumption patterns, and stressed the need for an accurate database of the fleet and its fuel use.
Noting that fleet data can be compiled through cooperation among executive bodies, he said: "Every ministry and responsible body must report the number of buses and minibuses under its management, broken down by province, department and organizational unit, so that each sector's diesel consumption can be determined and compared against measurable benchmarks."
He called for recording consumption, matching allocated quotas to actual performance, and continuously evaluating bodies' performance, stressing: "Fuel consumption by the government-managed fleet must be transparent, documented and open to oversight, and no body is exempt from consumption-management duties."
The president added that consumption management in the public sector, given its access to information and capacity for direct oversight, should be pursued with seriousness and the performance of bodies in this area continuously assessed.
Following up on resolutions and returning the benefits of reform to the people
Summing up the discussion, Pezeshkian stressed continuous follow-up on resolutions and accountability among executive bodies, and called for coordinated implementation of programs to reorganize fuel distribution, combat smuggling, make quotas transparent, manage consumption in government bodies and reform subsidy allocation.
He said the measure of success for fuel consumption policies is not merely lower consumption or lower fuel supply costs; it must also be clear how, and through what mechanism, the freed-up resources serve to improve people's livelihoods, especially for disadvantaged groups.
Finally, the president obliged the responsible bodies, besides carrying out their duties precisely, to submit documented reports on their performance and results, so that the extent to which goals are met can be assessed and the public held informed and accountable.
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