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Energy reform key to Iran’s economic recovery, speaker says

Oct 27, 2025, 08:47 GMT+0Updated: 00:06 GMT+0

Economic reform in the country is impossible without energy reform, Iran’s parliament speaker Mohammad Bagher Ghalibaf said on Monday, adding that his remarks should not be interpreted as an immediate plan to raise energy prices.

“Economic reforms and progress are meaningless without energy reform,” Ghalibaf said in a speech on Monday. “With the current energy situation, can we expect proper efficiency? Everything about it is completely wrong,” he said.

The government’s priority, he added, was not to raise prices but to restructure the energy sector. “This does not mean we want to increase energy prices – that has its own method. Raising prices is not the first step; there are several stages before that,” Ghalibaf said.

The comments come amid growing conjecture in Iranian media over a possible imminent increase in gasoline prices. Last week, President Masoud Pezeshkian said there was no doubt that fuel prices would eventually need to rise, though he acknowledged that such a move could worsen economic hardship for ordinary Iranians.

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Iran's Parliament Speaker Mohammad Bagher Ghalibaf

“It’s not that simple,” Pezeshkian said. “Of course it must be done, that’s obvious, but it can’t be done overnight,” he added.

Call for fair energy use

Ghalibaf described the first step in energy reform as what he called popularization, suggesting that the country’s vast energy resources must benefit all citizens equally. “This is public wealth and must reach the people fairly. It’s not acceptable that 46 percent of the population fully benefits from part of this energy while 52 percent get nothing,” he said.

Changing consumption habits, he added, is essential to avoid waste. “If culture improves, energy consumption will improve. We cannot have the heater on while people sit at home in undershirts,” he said.

The parliament speaker did not elaborate on the mechanism of the proposed popularization plan. His remarks come as Iran, despite possessing the world’s second-largest natural gas reserves, faces chronic energy shortages that disrupt industries and daily life.

In recent months, widespread blackouts and gas shortages have forced temporary shutdowns across several provinces, exposing what officials themselves have described as deep structural and managerial failures in the energy sector.

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