Mohammad-Sadeq Azimifar made the remarks during a news conference on the third day of the 29th International Oil, Gas, Refining, and Petrochemical Exhibition. He noted that the refining industry faced significant fluctuations in 2023, with over 160,000 personnel working around the clock in the country’s fuel supply chain. 

He added that under the 14th administration, the quality of petroleum products improved, while production increased by an average of over 8 million liters of gas oil and more than 7 million liters of gasoline. Some of this increase was achieved through process optimization. 

The deputy oil minister said liquid fuel deliveries to power plants rose by nearly 40% in 1403 compared to 1402, reaching 21.8 billion liters. However, a 7% surge in consumption turned the country into a net importer of petroleum products. 

1403: A turbulent year for the refining industry 

Azimifar stated that the refining industry faced numerous challenges in 1403, calling it one of the most turbulent years for the sector. Iran’s refining network, consisting of 10 major refineries with a capacity of 2.4 million barrels of crude oil per day and over 14,000 kilometers of pipelines, grappled with issues such as energy imbalance. 

He noted that while Iran was once a gasoline exporter, rising consumption—driven by population growth, shifting transportation policies and consumption patterns—has turned it into an importer. 

The company has prioritized infrastructure development, consumption monitoring and combating fuel smuggling. A key initiative in 2023 was the implementation of real-time monitoring to track petroleum products from production to consumption. 

Increased production under 14th administration 

Azimifar said that since the start of the 14th administration, the country’s gas oil reserves had decreased by about 43% compared to the same period in 1402. Extensive maintenance at refineries, particularly distillation units, reduced production capacity due to supply chain pressures. Additionally, financial arrangements between the government and refineries placed significant strain on the NIORDC, leading to a buildup of unpaid dues. 

However, production rebounded with the launch of the Abadan refinery’s hydrocracker unit and increased crude oil feedstock. The Shiraz refinery also began producing all its gasoline in compliance with Euro 5 standards, while process improvements at other refineries activated idle capacity. 

He highlighted infrastructure weaknesses in fuel transportation as a major challenge. In 1403, key projects were undertaken to strengthen fuel delivery infrastructure, including the launch of a new 460-kilometer pipeline from Bandar Abbas to Rafsanjan. Expanding the road tanker fleet also significantly improved transport capacity.