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War and sanctions deepen Iran's fuel crisis

A daily 15 million liter gasoline deficit has led to hours-long queues and allegations of contaminated fuel across the country.

Updated Sep 1, 2026 · 16:22 UTC1 reports

The short version

  • A compounding mix of war damage, import restrictions, and newly tightened U.S. sanctions has exacerbated Iran's domestic fuel shortage, leaving a daily deficit of approximately 15 million liters of gasoline.
  • Motorists and commercial truck drivers across multiple Iranian cities are facing hours-long waits, overnight vehicle stays, and abrupt filling station closures.
  • Amid the shortages, public distrust is rising over fuel quality, marked by confirmed fuel-water contamination in Rafsanjan and trials of methanol in domestic gasoline mixtures.
  • Economists suggest the government may be laying the groundwork for a politically sensitive price hike to address smuggling, state debt, and consumption, despite memories of the deadly November 2019 protests.

Key facts

  • Iran currently experiences a daily gasoline deficit of roughly 15 million liters due to war damage, import issues, and a tightening U.S. blockade.[Deutsche Welle]
  • Drivers and truck operators report severe delays, including sleeping in vehicles overnight and waiting in kilometer-long queues to purchase diesel or highly rationed gasoline.[Deutsche Welle]
  • The Persian Gulf Star Oil Company confirmed it has been testing methanol as an oxygenate at a 0.5% concentration in its domestic gasoline.[Deutsche Welle]
  • In Rafsanjan, local authorities confirmed an incident where water contaminated gasoline at a local filling station due to a technical fault.[Deutsche Welle]
  • The National Iranian Oil Company has accumulated tens of billions of euros in debt to the central bank, commercial banks, and the National Development Fund.[Deutsche Welle]

What remains uncertain

  • It remains unverified whether the ongoing shortages are a deliberate governmental strategy to prime public acceptance for an impending energy price increase.[Deutsche Welle]
  • Motorists have alleged that widespread engine damage is being caused by poor-quality or diluted gasoline, though these specific claims have not been independently established.[Deutsche Welle]

Sources