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Home Business & Finance Oil & Gas

Fuel crisis deepens: Iran struggles as US blockade chokes petrol imports

Vice President Mohammad Jafar Ghaempanah says Iran cannot import enough petrol as domestic production falls short, with long queues emerging at filling stations.

Peculiar Adirika by Peculiar Adirika
August 27, 2026
in Oil & Gas, News
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Fuel crisis deepens: Iran struggles as US blockade chokes petrol imports

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Iranian Vice President Mohammad Jafar Ghaempanah has said Iran is unable to import enough petrol to cover a domestic supply shortfall because of a United States naval blockade, as motorists in Tehran and other areas face increasingly long queues at filling stations.

The admission comes as the Iran petrol shortage adds a fresh layer of economic pressure to a conflict that has increasingly moved beyond the battlefield and into Iran’s energy supply system.

Also read: NFF President Ibrahim Gusau, board members resign amid national team failures, funding probe

“Petrol production is insufficient, and because of the US naval blockade, we cannot import it,” Ghaempanah said, according to Iran’s state-run IRNA news agency.

The shortage has become visible on the streets, with motorists forming lengthy queues at petrol stations in Tehran.

Some stations have reportedly closed temporarily after running out of supplies, while others have imposed limits on the amount drivers can purchase.

Iran’s Energy Optimisation Organisation estimates that the country is facing a daily petrol deficit of about 15 million litres against demand of roughly 135 million litres.

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The problem is particularly striking because Iran is one of the world’s major oil producers.

However, its refining capacity has long struggled to meet domestic demand, leaving the country dependent on petrol imports to bridge the gap.

The current crisis has been compounded by damage to refining, storage and distribution infrastructure during the war.

Reports indicate that some facilities were damaged during US and Israeli strikes earlier in the conflict, further constraining domestic supply.

The US naval blockade, which has reportedly been in place since July, has made the situation more difficult by restricting Iran’s ability to obtain imported petrol.

Iranian officials have also pointed to unusually high demand and panic buying as factors worsening pressure on the distribution network.

The National Iranian Oil Products Distribution Company has maintained that the wider fuel supply chain remains stable and said some disruptions were linked to rumours and delivery delays.

The government is meanwhile considering changes to the country’s petrol quota system.

Mohsen Haji-Mirzaei, chief of staff to President Masoud Pezeshkian, said on Monday that fuel quotas would be reviewed, although details of any changes were not immediately announced.

Iran’s heavily subsidised petrol system adds another complication. Fuel is sold at prices far below international market rates, making any attempt to raise prices politically sensitive.

Ghaempanah criticised the existing arrangement, arguing that the subsidy system disproportionately benefits people with 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, according to IRNA.

President Pezeshkian has also acknowledged the financial burden of subsidised petrol.

The government faces a difficult choice between maintaining cheap fuel and reducing consumption at a time when supplies are under severe pressure.

A trial increase in petrol prices in Kerman province earlier this month was halted within hours, highlighting the sensitivity surrounding fuel reforms.

Analysts have warned that a significant price increase could trigger further economic and social difficulties at a time when Iranian households are already facing severe inflation and a sharply weakened currency.

The pressure comes as the wider US-Iran conflict approaches its sixth month.

The war began on February 28, 2026, and has increasingly centred on control of the strategic Strait of Hormuz, a vital route for global energy shipments.

Iran has maintained restrictions around the Strait, while the United States has sought to restore freedom of navigation and intensify economic pressure on Tehran.

The confrontation has disrupted energy flows and contributed to broader uncertainty in global oil markets.

Diplomatic efforts are continuing alongside the economic confrontation.

Qatar is preparing renewed mediation efforts between Washington and Tehran, while Iran and Oman have also been discussing arrangements concerning maritime traffic through the Strait of Hormuz.

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For ordinary Iranians, however, the immediate concern is increasingly practical.

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Long queues, station closures and tighter purchasing limits are turning a geopolitical confrontation into a daily struggle for access to one of the country’s most essential commodities.

Also read: NFF President Ibrahim Gusau, board members resign amid national team failures, funding probe

The unfolding Iran petrol shortage therefore presents Tehran with a difficult challenge: maintaining affordable fuel for a population already under economic strain while finding enough petrol to meet demand in the face of restricted imports and damaged infrastructure.

Peculiar Adirika
Peculiar Adirika

Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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