"Gasoline Might Run Out"... Long Lines at Tehran Gas Stations Amid US Sanctions

Long lines of citizens trying to purchase fuel have formed in front of gas stations in the Iranian capital of Tehran, the British newspaper Financial Times (FT) reported on the 25th local time.

The newspaper explained that this phenomenon stems from deepening fuel shortages caused by a U.S. maritime blockade and spreading anxiety among citizens, reflecting the heavy burden that the fallout from the war is placing on Iran's economy.

A gas station employee in Tehran told the newspaper, "Drivers are rushing to fill up their tanks before they are empty, fearing that the war will resume or fuel prices will rise," adding, "Since the fueling limit is 20 liters per visit, they have to visit the gas station repeatedly to fill up their fuel containers."

Although Iran is an oil-producing country, it lacks sufficient refining facilities and must import refined fuels such as gasoline and diesel.

However, the U.S. maritime blockade resumed on July 14, significantly shrinking gasoline supplies, and refining facilities were partially damaged by U.S. and Israeli airstrikes at the beginning of the war.

Even before the war, long lines frequently formed at gas stations across Tehran due to unstable fuel supplies.

The Fuel Optimization Company under Iran's Ministry of Petroleum stated that out of a daily gasoline demand of 135 million liters, there is currently a shortage of 15 million liters, and urged fuel conservation.

Iran has declared an "economic war" and chosen "resistance" instead of negotiation against the U.S. government, which is further intensifying sanctions, but fuel shortages could pose a serious problem.

The items that Iranian authorities pay the closest attention to for price stability are the staple food nank (a type of flatbread) and fuel.

Because these items directly affect the livelihoods and public sentiment of the Iranian people, authorities have no choice but to be sensitive to fuel shortages.

The FT reported, "The Iranian government pays massive subsidies to stabilize fuel prices, but authorities also believe they will no longer be able to continuously supply fuel at some of the cheapest rates in the world."

Iranian President Masoud Pezeshkian pointed out this month that supplying gasoline at prices far below market value places a heavy burden on government finances, which should be channeled into supporting food and workers.

According to Iranian media, retail gasoline prices are maintained at 15,000 to 50,000 rials per liter, depending on the subsidy tier, which translates to about 10 to 36 Korean won.

As the value of the Iranian rial has plummeted, the price becomes absurdly low when converted into foreign currency.

With citizens already suffering from soaring prices caused by the war, raising fuel prices under the pretext of properly distributing government finances is a very difficult decision for the Iranian leadership.

Earlier this month, a hike in premium gasoline prices in Kerman Province was suspended just hours later due to public backlash.

In January 2019, an increase in fuel prices triggered anti-government protests.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.