US Blockade Leaves Iran Struggling To Import Petrol, Official Says

Iran is struggling to import enough petrol to cover a shortfall in domestic production because of a US naval blockade, a senior Iranian official has said.

Vice President Mohammad Jafar Ghaempanah said the country’s petrol output was insufficient to meet demand, while the blockade had made it difficult for Tehran to bring in additional supplies.

“Petrol production is insufficient, and because of the US naval blockade, we cannot import it,” the official IRNA news agency quoted Ghaempanah as saying on Wednesday.

His comments came as long queues were reported at petrol stations across Iran, with the conflict between Tehran and Washington increasingly putting pressure on the country’s economy and fuel supply.

On Monday, Mohsen Haji-Mirzaei, the Iranian president’s chief of staff, said petrol quotas would be reviewed, although he gave no details on what changes could be introduced.

The reported fuel shortages come against the backdrop of the war between Iran and the United States, which began on February 28. Tehran has since taken control of the strategic Strait of Hormuz, while Washington has imposed a naval counter-blockade on Iranian ports.

Ghaempanah also criticised Iran’s long-standing system of heavily subsidised petrol, arguing that the arrangement unfairly benefits people who own several vehicles.

“The distribution of petrol in the country is inequitable. Owners of several vehicles benefit from subsidies, unlike those who do not own one,” he said.

Iran is one of the world’s major oil producers and has some of the cheapest petrol prices globally, largely because of extensive government subsidies.

However, the subsidy system has become increasingly difficult to reform, with any attempt to raise petrol prices likely to carry significant economic and political consequences for the government.