War and sanctions deepen Iran's fuel crisis

Following Washington's announcement of fresh economic sanctions, Iran's fuel crisis has worsened dramatically. Long queues at gas stations have become commonplace, with some drivers waiting for hours, while others sleep in their cars overnight in hopes of securing fuel the next morning. Diesel is particularly scarce, with truck drivers facing lines that stretch for kilometers, sometimes spending the night waiting for a few dozen trucks to be filled.

Iran is currently experiencing a daily gasoline deficit of around 15 million liters (about 4 million gallons).

The situation has been exacerbated by war damage, difficulties importing refined products, and a tightening US blockade. In response to the shortage, some filling stations in cities like Karaj have implemented strict limits on individual purchases, typically around 5 liters (1.3 gallons) per person. Drivers have reported varying experiences, with some stations closed entirely, others lacking fuel altogether, and many enduring lengthy queues.

For truck drivers, the shortage directly impacts their livelihoods, as they often spend their days waiting in diesel lines or on the road, with no income. Some have resorted to sleeping at filling stations while waiting for tanks of fuel. The shortage has also coincided with the use of methanol as an oxygenate in domestically produced gasoline, raising suspicions of water or alcohol contamination in some cases.

In Rafsanjan, local authorities confirmed that water had been mixed with gasoline at a filling station, though the cause remains under investigation.

The government has acknowledged the subsidy system encourages excessive consumption and smuggling, while also highlighting inefficiencies in cars, insufficient public transport, and stagnant wages. Economist Hassan Mansour believes the government is preparing for higher energy prices, citing budget documents showing the National Iranian Oil Company's significant debt and tax liabilities.

While higher prices could serve as a demand management measure and generate additional revenue, they also reflect a deeper financial weakness in Iran's economy.