Daily gasoline output reaches 120m liters amid push to curb energy imbalance

Daily gasoline output reaches 120m liters amid push to curb energy imbalance

TEHRAN - Iran's total daily gasoline production—including refinery output and reserves—has reached approximately 120 million liters, a senior oil official said, as the country pushes to bridge the growing gap between supply and consumption.

Mohammad Sadegh Azimifar, deputy oil minister and head of the National Iranian Oil Refining and Distribution Company (NIORDC), told state media that Iran’s 10 main refineries are currently processing over 2.4 million barrels of crude oil and condensates per day.

To address the country’s liquid fuel imbalance, he said, the government has implemented a dual-track strategy in its 14th administration, focusing primarily on maximizing output from existing refineries.

Azimifar noted that in the second half of the Iranian year 1403 (ended on March 20, 2025), enhanced refinery efficiency led to an average increase of 8.0 million liters per day in gasoline production and 7.0 million liters in diesel output. Overall, the refining sector expanded by five percent compared to the previous year, adding around 100,000 barrels per day to total refined products.

Efforts to manage the production-consumption gap this year include quality and quantity upgrades at existing facilities. For example, a project at Tehran refinery is set to boost gasoline output by 20 percent and upgrade its fuel standard to Euro-5. A diesel quality improvement project is nearing completion at Shiraz refinery, and Esfahan refinery will soon launch a white oil hydro-desulfurization unit.

Beyond optimizing current infrastructure, the country is working to bring new refining projects online. Azimifar said at least one, and possibly two, new refining projects could be added to the current network of ten refineries in the current year. Among these is the 60,000-barrel-per-day Alish refinery, under construction by the private sector in Siraf, and the first unit of the 120,000-barrel-per-day Mehr Parsian Gulf refinery in Bandar Abbas.

The ultimate goal, according to Azimifar, is to reach daily production of 129 million liters of gasoline and 130 million liters of diesel. He added that the increase in output over the past six months has contributed to the government's seventh development plan. However, he stressed that production growth alone cannot resolve the energy imbalance.

“Iran’s energy consumption intensity is about 2.5 times the global average,” he said, adding that over 53 percent of the country’s transport fleet is outdated and consumes more than twice the global average fuel per vehicle. He called for fleet modernization, electrification, and stronger coordination among relevant agencies.

Azimifar also highlighted a drop in compressed natural gas (CNG) use as a contributing factor to higher gasoline demand. CNG consumption has declined from roughly 24 million cubic meters per day in late 2020 to 18–19 million cubic meters in 2024. This drop, he said, has played a role in pushing up gasoline consumption.

He stressed that alongside expanding high-quality fuel production, managing consumption is vital. Current gasoline production stands at around 105 million liters per day from refineries and 20 million from storage, while national demand in 1403 is averaging 124 million liters daily. To narrow the deficit, the government is focusing on slowing consumption growth through vehicle scrappage, fleet modernization, and vehicle quality upgrades—all while seeking to minimize fuel imports.

EF/MA

source: tehrantimes.com