The fuel crisis in Iran is deepening. Long lines form outside gas stations, with some drivers staying overnight in the hope of filling up the next day. Reports of poor quality gasoline are increasing.
Just days after Washington announced new sanctions against Iran, the country's fuel shortage is becoming more and more acute. Drivers across the country are reporting waiting for hours at gas stations and even sleeping in their cars in line. Some gas stations are closing before they have served everyone - there is simply no gas. The situation with diesel is even worse - truck drivers report that the queues are kilometers long, but they are forced to spend the night in them in order to continue working.
Iran's deficit is about 15 million liters per day. The damage caused by the war, the difficulties with oil exports and the tightening US blockade are extremely complicating the situation in the country.
Hours in line for just a few liters of fuel
"Yesterday I visited several gas stations - some were closed, others had no gas, others had very long queues", a resident of the city of Karaj told DW. Some gas stations there have imposed a limit - up to five liters per fill-up. The man says that he went out at six in the morning to avoid the queues, but they were no shorter in the early hours. According to him, the shortage is being used to prepare the public that the state will raise prices.
For truck drivers, the lack of fuel is fatal - without it they cannot work. One driver told DW that he sleeps in queues. And every day lost in waiting means new costs, which are added to the already increased costs for insurance, repairs, and maintenance.
Is Iran deteriorating quality?
At the same time, reports are becoming more frequent that Iran is starting to add methanol to gasoline produced in the country. Vahid Ganeifard, CEO of Persian Gulf Star Oil Company, recently confirmed that the refinery has begun testing the addition of methanol to its gasoline.
Officials claim that the tests meet technical requirements. But the timing of the tests is fueling public suspicions. Videos shared online show drivers holding bottles of unusually clear fuel and claiming that the quality of the gasoline has deteriorated. Some claim that the fuel is mixed with water or alcohol. There is no evidence of this. However, there has been one confirmed case of water-tainted fuel in the city of Rafsanjan. Authorities said it was a technical error and that an investigation is underway.
These cases, although isolated, are adding to the fears of drivers who are already in a difficult situation. A Tehran resident told DW that he spent the equivalent of about 4,500 euros to repair his car after a breakdown that he believes was caused by the deteriorated quality of the gasoline.
The man says he does not want to protest publicly. Meanwhile, in the city of Rey, south of Tehran, drivers gathered in protest outside a gas station after several cars broke down after filling up at the station.
The problem is not just technical - it reflects a deep breakdown in trust between consumers and the authorities in Iran, at a time when they are discussing raising fuel prices. Tehran claims that the current subsidy system encourages excessive consumption and smuggling and has become an unbearable burden on state finances. But consumers also point to other problems - such as inefficient cars, inadequate public transport and incomes that fail to keep up with inflation.
Is a price increase coming?
Economist Hassan Mansour believes that the government is preparing a hike. Authorities have repeatedly said that fuel prices are inadequately low and that large quantities of fuel are being illegally exported from the country. According to the regime, the solution is to raise prices so that they are closer to the international market.
Mansour also believes that the State Oil Company of Iran is in debt by tens of billions of euros to the Central Bank, as well as to other private banks and the State Development Fund. If these obligations cannot be covered, they weaken the state finances and contribute to instability and inflation, the economist commented. Therefore, raising gasoline prices could serve both as a measure to regulate demand and as a source of additional revenue.
A politically dangerous move
The regime does not have many good options. Imports are difficult to finance and transport, and domestic production fails to meet needs. Increasing it requires investment and technology, and limiting consumption requires strict fuel rationing or price increases. Both are politically dangerous.
Iranian authorities have not forgotten the events of November 2019, when a sudden increase in gasoline prices sparked nationwide protests, followed by bloody repression and an internet shutdown. Today, the economic situation is significantly more unstable. The war with the United States has damaged infrastructure, international sanctions are intensifying, and household purchasing power has fallen dramatically. Long lines for fuel are just another source of discontent.