Masoud Pezeshkian, the President, emphasized the importance of reforming energy subsidy distribution mechanisms and preventing resource waste during a meeting attended by officials from executive agencies and relevant institutions to review the optimization and management of fuel consumption. This meeting was held to examine the latest actions of responsible agencies in implementing the assigned tasks and the extent of achieving the planned programs for reducing fuel consumption.
Reduction in Fuel Consumption and Imports
During this meeting, Masoud Pezeshkian, while receiving performance reports from the agencies, stressed the necessity of enhancing inter-agency coordination and strengthening continuous oversight over the distribution of energy carriers. In a report presented at this session, it was announced that the actions taken to organize the fuel distribution system could lead to a daily reduction of about 3 to 5 million liters in fuel consumption. Additionally, the amount of fuel imports in October faced a 58% decrease compared to the same period last year.
Read more: Implementation of the Fuel Card Identification Project in Tehran
Equitable Distribution of Subsidies and Prevention of Fuel Smuggling
Pezeshkian pointed out that the main goal of the government in reforming energy subsidy distribution mechanisms is not to generate revenue, emphasizing that all resources obtained from consumption management and waste reduction should be spent on strengthening the livelihoods of low-income groups. He also referred to the necessity of revising the gas subsidy allocation method and designing a fair mechanism for households to benefit from government support.
In another part of this meeting, the President considered combating fuel smuggling and preventing the diversion of subsidized products as essential requirements for energy consumption management and emphasized the need for strict action against violators. He stated, "Those involved in fuel smuggling must be dealt with, and their access to subsidized quotas should be restricted."
Pezeshkian also stressed the necessity of establishing a continuous and data-driven oversight system over the supply chain, transfer, and consumption of fuel, saying: "If fuel consumption management and control are carried out accurately, it should be clear how much fuel is consumed in the country and how much is diverted from the official distribution network."
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