Sharp Drop in Fuel Consumption despite Iran's Refinery Damage

Iran has achieved significant reductions in fuel consumption despite challenges stemming from reduced refinery capacity following attacks by American-Zionist enemies, as well as damage to oil storage and distribution infrastructure in the northern half of the country and damage to fuel storage tanks in Tehran and Alborz provinces, according to a report presented to the Cabinet.

The results were attributed to detailed planning, coordination among responsible agencies, and the implementation of consumption management policies.The Cabinet met Sunday afternoon under President Masoud Pezeshkian. Ministers reviewed key executive issues and presented updates on negotiations, energy consumption management, and the progress of government programs.

The Cabinet approved funding to compensate for damage to medical centers affected by the recent war, payment of Iran's membership dues to international organizations and forums, withdrawal of a bill on holding gatherings and rallies, activation of the "Iranian digital wallet" for government employees, and updated railway transport regulations. The interior minister, who chairs the working group on optimal energy consumption management, presented a report on the latest status of savings and energy management programs.

According to the report, natural gas consumption dropped by 11.9% from the start of the year (March 2026) through early August, compared with the same period last year. Fuel consumption overall fell by 10.2% over the same period, while diesel consumption dropped by 65.4%. The report noted the 10.2% absolute reduction in fuel consumption is equivalent, in terms of energy production capacity, to the output of two power plants.

The Cabinet also approved several other measures covering compensation for war-related damage, international cooperation, legislative affairs, the payment system, and rail transport. Earlier in the session, the foreign minister briefed the Cabinet on the latest status of talks between Iran and Oman, saying negotiations are in their final stages and nearing completion.

The Cabinet also approved, at the recommendation of the Plan and Budget Organization, funding to compensate medical universities, health care centers, support and research institutions, and the Red Crescent Society's relief and rescue operations for damage sustained during the recent war.

At the recommendation of the president's legal deputy, the Cabinet approved payment of Iran's membership dues to international organizations and forums. At the recommendation of the Central Bank of Iran, the Cabinet approved activation of the "Iranian digital wallet" for government employees. At the recommendation of the Ministry of Roads and Urban Development, the Cabinet also approved updated regulations on violations and offenses in the rail transport network. - Shana