Iran has no plans to increase energy prices, and instead will introduce an incentive-based system that rewards consumers for reducing energy use, according to Esmaeil Seqab-Esfahani, head of the Strategic Energy Management and Optimization Organization.
Speaking on Saturday, Seqab-Esfahani said Iran has maintained solid performance in energy production despite extensive sanctions, but remains among the world’s poorest performers in energy consumption efficiency. He said excessive consumption has contributed to a widening gap between domestic energy supply and demand.
Iran produces about 297 billion cubic meters of natural gas annually under normal conditions, he said. Of that amount, 13 billion cubic meters are exported, 40 billion cubic meters are used for operational needs, and 243 billion cubic meters enter the national distribution network. Domestic demand, however, stands at about 285 billion cubic meters.
Seqab-Esfahani said the government is pursuing two parallel strategies: increasing production while managing consumption more effectively. He emphasized that fuel imports would place significant pressure on foreign currency reserves and reduce funding available for essential goods and medicine.
He called for stronger conservation efforts across government agencies, accelerated development of solar power plants and broader public participation in energy-saving measures. According to the official, Iran spent about $5.5 billion on gasoline imports last year and currently requires imports of roughly 30 million liters of gasoline per day, costing an estimated $8 billion annually.
He stressed that raising energy prices is neither practical nor reasonable under current economic conditions. Instead, the government plans to replace price increases with a public-benefit model that provides direct cash rewards to households and industries that reduce energy consumption.