Oil Minister Announces Elimination of Fuel Cards for Gas Stations; New Gasoline Restrictions to be Implemented Within 10 Days

Following the government's efforts to reduce gasoline consumption and control imbalance, the Oil Minister announced today on the sidelines of a cabinet meeting that within 10 days, refueling will only be possible through personal fuel cards; a statement that implies the elimination of fuel cards for gas stations and restrictions on fuel supply. According to the state news agency IRNA, Javad Owji emphasized that gasoline consumption during the Nowruz holidays has increased by about 7 million liters compared to last year, and 'based on the law and the 1403 budget, the Ministry of Oil is obligated to ensure that 95% of refueling operations are conducted with personal fuel cards in the new year.' The Oil Minister of the Islamic Republic stated that from one week to 10 days from now, the refueling process will only be conducted through personal fuel cards. Voice of America has reported several times in the past year, citing statements from Islamic Republic officials and media emphasis in Iran on the necessity of managing consumption and comparing consumption in Iran with other countries, about fundamental changes in the gasoline sector. Ahmad Vahidi, the Minister of Interior, stated on December 15: 'One liter of our gasoline is cheaper than one liter of water.' He emphasized that 'the low price of gasoline inherently increases gasoline consumption.' Voice of America also noted in a report that the legal obligation in the 'Seventh Development Plan' and the 1403 budget, alongside officials' statements, indicates a 'big event' in the gasoline sector. Regarding officials' and some parliament members' references to the necessity of economic surgery, several experts have stated that any manipulation of gasoline prices will lead to increased economic pressures and disrupt political and social relations in Iran. The increase in gasoline prices during Hassan Rouhani's presidency in November 2019 led to widespread protests in Iran. In response to these widespread protests, the Islamic Republic suppressed the demonstrators. In this context, Reuters reported on December 23, 2019, that about 1,500 people were killed in the protests and quoted three sources close to the Supreme Leader of the Islamic Republic, stating that Khamenei had instructed government and security officials to 'do whatever is necessary' to stop the protests. With an 18% increase, daily gasoline consumption during Nowruz reached 130 million liters. The average daily gasoline consumption exceeded 121 million liters; the peak of imbalance and the possibility of fuel supply challenges. The intensification of gasoline imbalance in Iran; a record consumption of 152 million liters per day was registered. A warning about 67% inflation in the coming year; an official labor organization: protests in Iran will intensify. The car rental market heated up ahead of Nowruz; cars continue to rise in price. The government's push to increase gasoline prices; the Minister of Economy's advisor: let's talk to the people, then we can raise prices.