{"id":14115,"date":"2025-05-07T08:44:13","date_gmt":"2025-05-07T08:44:13","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14115"},"modified":"2025-05-07T08:44:13","modified_gmt":"2025-05-07T08:44:13","slug":"president-pezeshkian-economic-recovery-depends-on-subsidy-consumption-reform","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14115\/","title":{"rendered":"President Pezeshkian: Economic recovery depends on subsidy, consumption reform"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0President Masoud Pezeshkian said reforming consumption patterns, increasing productivity, and fairly distributing subsidies are among the government\u2019s top priorities to overcome the current crisis. He stated that nearly $150 billion in hidden energy subsidies are paid annually, adding that proper management of these resources would eliminate poverty in the country.<\/p>\n

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Speaking Monday at the third session of the sixth Assembly of Experts, Pezeshkian noted the challenges his administration inherited upon taking office. \u201cThe government faced problems that, despite efforts to manage them, persist,\u201d he said. \u201cFrom the beginning, there were imbalances\u2014for example, a budget deficit of nearly 780 trillion tomans that needed to be addressed.\u201d<\/p>\n

Referring to last winter\u2019s critical fuel shortage, he added, \u201cFuel reserves were about 1.2 billion liters, while the actual need was estimated at 3.5 billion liters\u2014a deficit of over 2 billion liters. In such conditions, we asked people to reduce household gas consumption to get through the winter.\u201d<\/p>\n

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Energy consumption three times global average<\/strong>\u00a0 <\/strong><\/p>\n

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The president warned that the country is on the brink of crisis in electricity, water, energy, fuel and other sectors. \u201cI told the supreme leader that we must find solutions to address people\u2019s livelihoods and these imbalances,\u201d he said. \u201cThe government has launched a program to generate nearly 30,000 megawatts of solar power. Contracts have been signed for 15,000 megawatts, and we are advancing another 7,000 megawatts using domestic capacity.\u201d<\/p>\n

Pezeshkian highlighted the state of subsidies and energy consumption, saying, \u201cFinancial resources are scarce, yet our energy consumption is three times the global average. We import $4 billion worth of gasoline annually just to keep cars running. This is unsustainable\u2014we must collaborate to reform it.\u201d<\/p>\n

Emphasizing the need to change consumption habits, he said, \u201cThis culture must shift. Mosques can play a key role here. Simply adjusting consumption patterns could resolve many electricity and gas issues. Such a small step could have a major impact.\u201d<\/p>\n

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Why build petrochemical plants without infrastructure<\/strong>?<\/strong><\/p>\n

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The president noted that last winter, when citizens were asked to lower home temperatures by just two degrees, they cooperated. \u201cNow, if households and mosques optimize temperature control, significant results can be achieved,\u201d he said.<\/p>\n

If public cooperation continues, Pezeshkian said, freed-up energy resources could improve living standards. \u201cCurrently, about $150 billion is spent annually on hidden energy subsidies for gas, electricity, gasoline and diesel. If these were distributed at real prices, no one would remain in poverty.\u201d<\/p>\n

He pointed to the disparity between domestic and global diesel prices: \u201cGlobally, diesel costs about 70,000 tomans per liter, but here it\u2019s sold for 300 to 400 tomans. This gap allows some to profit from quotas or smuggling without real economic activity. This must change.\u201d<\/p>\n

Addressing environmental concerns in development projects, Pezeshkian questioned, \u201cWhat justifies building petrochemical plants in areas without gas infrastructure? Some only seek land-use changes without creating jobs. We must assess how many jobs these projects actually generate versus the gas and electricity subsidies they receive. For many, the cost to the government far outweighs public benefits.\u201d<\/p>\n<\/div>\n<\/div>\n

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