TEHRAN — Iran is implementing emergency energy conservation measures and will import fuel as the summer season begins, facing increased constraints on its energy supply. President Masoud Pezeshkian urged households and offices to limit energy consumption.

Economic impacts from the ongoing conflict with the U.S. and Israel have reduced the government's resources to address this energy crisis. Strikes on Iranian energy infrastructure reduced daily gasoline production capacity from 115 million liters to 110 million liters. Gasoline consumption in Iran increased to 140 million liters per day in the current year.

The government uses a three-tiered pricing system for petrol distributed via government-issued fuel cards. Under standard schemes, Iranians are restricted to a maximum daily purchase of 30 liters of fuel. A wartime consumption cap restricts the daily emergency card allowance to 30 liters, with petrol station staff instructed to limit emergency card distributions to 10 to 15 liters per customer or suspend new card issuance. Since the beginning of the conflict, long lines have formed at petrol stations across Iran.

Successive governments have maintained utility bills below supply costs through oil-and-gas subsidies, administered tariffs, state-controlled pricing, and direct financial support. Adjustments to energy pricing structures have increased monthly utility bills for some Iranian small businesses. Authorities review consumer complaints regarding escalating utility bills. Households that reduce energy consumption qualify for utility discounts.

Widespread air conditioner usage contributes to an imbalance between energy supply and consumption during hotter months. President Pezeshkian removed his jacket during a government meeting to demonstrate avoiding air conditioner use in offices. Iran also experiences natural gas supply shortages during winter and summer consumption peaks. Esmail Saghab Esfahani, Vice President of the Organization for Energy Optimization and Strategic Management, said, "Reforming and increasing the price of energy is currently not feasible and logical due to the current economic conditions and social concerns." In November 2019, the government implemented a tiered gasoline price scheme that increased costs for some consumers, triggering nationwide protests.