• العربية
  • فارسی
BrandBrand
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Theme
  • Language
    • العربية
    • فارسی
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
All rights reserved for Volant Media UK Limited
volant media logo

Iran hikes natural gas tariffs, resumes use of dirty fuels

Nov 17, 2024, 14:12 GMT+0Updated: 15:21 GMT+0

The Iranian government has mandated increases in household gas tariffs while authorizing controversial measures to use mazut in power plants to offset the country's energy crisis.

A resolution by the Economic Council, published Sunday, instructed the Ministry of Oil to create household gas tariffs designed to discourage overconsumption. The move includes categorizing more households as high-consumption users.

“The Ministry of Oil must ensure these tariffs have evident deterrent effects for excessive and unnecessary consumption,” the resolution read.

The tariff changes come alongside scheduled power outages initiated on November 10 due to insufficient fuel reserves. The government had halted mazut burning at select power plants but now plans to restart its use across industries and provincial power stations, sparking public health and environmental concerns.

Citizens, who already contend with heavily subsidized but rising energy costs, now face worsening air quality as mazut—a fuel laden with sulfur and toxins—fills the gap left by dwindling natural gas supplies.

Iran’s decision to calculate residential gas tariffs comes as part of broader fiscal policies to generate additional revenue. Under the new structure, commercial tariffs will also rise, with calculations based on recent peak rates.

100%

Abbas Kazemi, former CEO of the National Iranian Oil Refining and Distribution Company, blamed mismanagement for the fuel shortages. Speaking to ILNA news agency, Kazemi said that critical diesel reserves were depleted after being sold on the stock market.

“Instead of stockpiling diesel for winter, the Abadan Refinery sold 400 to 500 million liters meant for power plants,” Kazemi said.

This mismanagement, coupled with a 36% decline in mazut and diesel reserves compared to last year, has pushed Iran’s electricity grid to a critical juncture. Reports indicate that natural gas supplies to power plants in November have plummeted by 30% year-on-year, leaving thermal power stations—responsible for 80% of Iran’s electricity generation—dependent on low quality mazut.

Speaking to Khabar Online on Sunday, Hadi Haghshenas, an economic expert and the governor of Gilan Province, said: "The lack of electricity primarily stems from insufficient gas supplies. The shortage of gas, in turn, is a result of inadequate investment in the country. The imbalances in the nation are turning into a tangled web, growing increasingly complex."

The use of mazut exacerbates air pollution. High levels of particulate matter from mazut burning increase the prevalence of respiratory and cardiovascular diseases.

“The government’s reliance on mazut is forcing citizens to endure air pollution on top of power outages,” said Mohammad Jafar Ghaempanah, a senior government official, who also suggested reducing household energy consumption as a solution to outages.

As winter approaches, Iranians face an unprecedented convergence of crises with spiraling utility costs, power shortages, and public health risks in spite of being a nation endowed with vast natural gas reserves.

Most Viewed

Arab states warn Iran of individual, collective retaliation over attacks - WSJ
1

Arab states warn Iran of individual, collective retaliation over attacks - WSJ

2

Israel denies pressing Trump for Iran strikes amid diplomatic push

3

Iran’s war threats now reach Europe, from Cyprus to Britain

4

Three Iran protesters face imminent execution after final family visits

5

Tehran denies Ghalibaf sidelined as Rezaei's role grows

Banner
Banner

Editors' Pick

  • Iran says US tone shifts but demands still block talks

    Iran says US tone shifts but demands still block talks

  • Halloween gathering in Tehran ends in arrests and police crackdown

    Halloween gathering in Tehran ends in arrests and police crackdown

  • Netanyahu or Eisenkot? Tehran sees little difference on war
    INSIGHT

    Netanyahu or Eisenkot? Tehran sees little difference on war

Banner
Banner
Banner
Banner

Spotlight

  • Iran looks to China and Russia for leverage in US talks
    ANALYSIS

    Iran looks to China and Russia for leverage in US talks

  • US can't end Iran war with symbolic Pickaxe strike, state TV commentators say

    US can't end Iran war with symbolic Pickaxe strike, state TV commentators say

  • Tehran’s factions weigh Doha talks as hardliners prepare the public for war

    Tehran’s factions weigh Doha talks as hardliners prepare the public for war

  • How far would Russia and China go to save the Islamic Republic?
    ANALYSIS

    How far would Russia and China go to save the Islamic Republic?

  • Qatar turns to US LNG to cushion Iran war losses

    Qatar turns to US LNG to cushion Iran war losses

  • Mohsen Rezaei’s negotiating calculus: someone else always pays the price
    ANALYSIS

    Mohsen Rezaei’s negotiating calculus: someone else always pays the price

  • Residents describe struggle to afford basic needs as Iran inflation hits 88.7%
    VOICES FROM IRAN

    Residents describe struggle to afford basic needs as Iran inflation hits 88.7%