economic high confidence

Gasoline Shortages Trigger Long Queues, Station Closures Across Tehran as Sanctions Squeeze Tightens

| Iran Conflict

Long queues formed at petrol stations across Tehran, with several stations closing or experiencing disruptions in eastern, southern, central, and northern districts; similar shortages were reported in Kerman and Mashhad. Fereydoun Yassami, Tehran regional manager of the National Iranian Oil Refining and Distribution Company, said more than 26 million litres of gasoline were distributed in the capital on Monday — a record for the current Iranian year, roughly 30% above usual demand — driven by panic buying. Iran faces a structural petrol deficit of roughly 15 million litres a day against total demand of about 135 million litres, a gap widened by the US naval blockade (in effect since July 14), war-damaged refining and storage/distribution infrastructure, and constrained northern import routes affected by the Ukraine war. Mohsen Haji Mirzai, head of President Pezeshkian's office, said a cut to petrol quotas (currently 20 litres) was 'certain' and that non-subsidized fuel prices would rise, though subsidized prices would hold; a pilot price increase in Kerman province was reversed within hours after public backlash. Pezeshkian himself asked rhetorically, 'Who said the government should buy petrol at 1.3 million rials per litre and then sell it for 15,000 rials?' Energy analyst Morteza Behrouzifar warned that raising prices now 'could have undesirable social and economic consequences' given how much pressure the public is already under. The National Iranian Oil Products Distribution Company maintained the supply chain remains stable and blamed the lines on rumor-driven panic buying and delivery delays.

Cars queue at a petrol station in Tehran amid a worsening gasoline shortage, Aug 25, 2026
Cars queue at a petrol station in Tehran amid a worsening gasoline shortage, Aug 25, 2026 — The National