Oil-rich Iran runs dry: Petrol stations shut as drivers circle empty pumps for hours

Long lines of vehicles snaked around petrol stations across Tehran and other key Iranian cities this week as widespread fuel shortages forced many pumps to shut down or limit sales, leaving motorists scrambling for scarce supplies.

Drivers reported traveling between multiple stations only to find them closed or empty, with waits stretching two hours or more at those still operating. 

Iranian media and citizen reports documented temporary closures in eastern, southern and other parts of Tehran, as well as nearby Karaj and cities farther afield such as Mashhad and Kerman. 

Some stations imposed daily supply caps that automatically shut off nozzles once limits were reached; others restricted purchases to about 20 litres (about 5 gallons) per vehicle.

Iran’s Energy Optimisation Organisation has stated the country faces a daily shortfall of roughly 14-15 million litres against demand of about 135 million litres. 

Officials cited record demand, wartime damage to refining and storage infrastructure, and disrupted imports. 

Although Iran holds some of the world’s largest crude oil reserves, its refining capacity has long fallen short of domestic needs, requiring petrol imports that a US naval blockade, in place since mid-July, has sharply curtailed. 

US and Israeli strikes earlier in the conflict that began in February also damaged refining and distribution facilities.

Panic buying intensified the strain after Iranian officials signaled possible reductions in fuel quotas and higher prices for purchases beyond allotments.

Mohsen Haji-Mirzaei, chief of staff to President Masoud Pezeshkian, said quotas would be “cut” while the subsidised price remained unchanged, with excess purchases facing higher costs. 

State-affiliated outlets and social-media videos showed lines forming even as some motorists topped off partially full tanks amid fears of further shortages or price hikes.

National Iranian Oil Products Distribution Company officials maintained that the overall supply chain remains stable and attributed disruptions partly to rumors, delivery delays from heavy traffic, and constraints on Tehran’s war-damaged infrastructure. 

They said the situation should ease in coming days. 

Gasoline remains heavily subsidised and among the cheapest in the world, a politically sensitive issue that has previously sparked unrest.

Latest update (as of Aug. 26, 2026)

Queues persisted into Wednesday following US Treasury Secretary Scott Bessent’s announcement of expanded secondary sanctions aimed at further isolating Iran’s economy. 

Iranian officials continued discussing quota adjustments and ways to align consumption with domestic production. 

No immediate resolution to the distribution bottlenecks has been announced, as per AFP. 

Reports of shortages and station disruptions continued circulating from Tehran and provincial areas.

AP also reported that Iran is experiencing widespread gasoline shortages with many stations shutting down or limiting service and long queues forming. 

Longstanding issues of refining capacity and management play a role, but the acute crisis is driven primarily by the ongoing conflict’s damage to infrastructure, the US blockade restricting imports, elevated demand, and related sanctions pressure.