TEHRAN – Iran plans to commission two new oil refineries and three fuel quality upgrade projects by the end of the current Iranian year (March 2026), the head of the National Iranian Oil Refining and Distribution Company (NIORDC) announced on Saturday.

Mohammad Sadegh Azimifar, head of NIORDC, said the initiatives align with the country’s strategic roadmap under the 14th administration, with a strong focus on completing high-priority and unfinished projects to boost the quality and capacity of the refining sector.

"The objective is not only to increase output but also to address long-standing structural issues in fuel distribution and refining," Azimifar noted. Once operational, the additions will raise the number of refineries in Iran’s national network to 12.

Azimifar said efforts are also underway to diversify Iran’s fuel mix, expand compressed natural gas (CNG) usage, and electrify aging vehicle fleets, all part of a broader strategy to optimize fuel consumption.

Combatting fuel smuggling remains a priority. According to Azimifar, smuggling is concentrated in the transportation sector and largely facilitated through fraudulent cargo manifests and permits.

He emphasized the need for precise data to trace the origins of smuggling, adding that without accurate diagnostics, any anti-smuggling efforts would be misdirected.

As part of governance reforms in the refining industry, Azimifar said the ministry is aiming to attract greater private-sector participation and develop intelligent systems across the fuel value chain—from production and transport to distribution.

He also highlighted the importance of motivating skilled personnel, calling human capital the sector’s greatest asset.

The new projects are expected to significantly enhance both the technical capacity and environmental standards of Iran’s downstream energy sector amid ongoing domestic demand and regional fuel trade dynamics.

EF/