Iranian Oil Minister Resigns Amid Fuel Shortages and Export Pressures

Iranian Oil Minister Mohsen Paknejad has stepped down from his position, citing personal reasons. His resignation was accepted by President Masoud Pezeshkian, who appointed Hamid Bovard, the CEO of the National Iranian Oil Company (NIOC), as acting minister. Paknejad had served in the role since August 2024 and insisted on leaving despite earlier submissions of his resignation.

Bovard, who has led the NIOC since 2024 and previously managed other key oil companies, will oversee the ministry temporarily while the government searches for a permanent replacement. His appointment comes at a critical time for Iran's energy sector, which is facing significant challenges due to a US naval blockade that has halted oil exports. Iran's central bank chief previously stated that exports have dropped to zero.

The resignation also follows recent measures to address fuel shortages, including a price hike for petrol exceeding the subsidized monthly allocation. Since September 7, petrol above the 110-litre quota has been priced at 100,000 rials per litre, double the previous rate. The government aimed to address a daily petrol deficit of about 10 million litres, with continued subsidies for the first 110 litres purchased each month.

Iran's energy industry is under immense pressure, with fuel consumption surpassing domestic refining capacity and increased reliance on imports. The war with the US and restrictions on shipping have further disrupted oil movements and revenue collection. Paknejad had previously noted that revenue from already sold oil was still reaching Iran, but infrastructure damage from the war had led to a loss of about 95 million cubic meters of gas production in August.