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Iran is grappling with a severe gas shortage that has not only exacerbated power outages but also brought significant portions of its industrial sector to a halt. Despite possessing 17.3% of the world’s natural gas reserves, according to Worldometer, a combination of poor management, aging infrastructure, and external sanctions has created a systemic crisis impacting millions of lives.
The electricity sector is among the hardest hit. Mohammad Mohammadi, head of production at Rey Power Plant, revealed that an 87% reduction in diesel fuel supply has forced the plant, with a nominal capacity of 711 megawatts, to shut down. “This power plant, one of the vital facilities for the country’s electricity supply, has been taken offline due to the lack of required gas and diesel fuel,” Mohammadi stated, further indicating an increase in rolling blackouts.
Energy Minister Abbas Aliabadi highlighted the broader implications: “Currently, 80 thermal power plant units, accounting for over 8,000 megawatts of capacity, are out of operation due to fuel shortages.” This figure represents a significant blow to Iran’s electricity generation capabilities, intensifying outages nationwide.
#AHVAZ, #Iran. Aug.29, 2018. Workers of the Ahavaz National Industrial Steel Group Staged a Protest Gathering Chanting: We Persist, We Will Die but Will Retake Our Rights. #IranProtests #FreeIran2018 pic.twitter.com/f6k7mEpRDf
— NCRI-FAC (@iran_policy) August 29, 2018
The cement industry has been particularly affected, with 22 factories ceasing operations due to gas shortages. Ali Akbar Alvandian, secretary of the Cement Industry Employers’ Association, reported: “Gas supply to cement plants has been restricted since October 7, and the limitations have gradually intensified.” Major producers, including Tehran Cement, North Cement, Firouzkouh Cement, and Abyek Cement, have halted production. Abyek Cement, a significant player in the sector, has entirely shut down its two kilns.
“The kilns in 22 cement factories are now idle, while such facilities are designed to operate continuously,” Alvandian emphasized. “Repeated interruptions, even for a few hours, completely disrupt clinker production, rendering operations infeasible.” Cement shortages are already driving up costs and delaying construction projects across the country.
The gas crisis has ripple effects across other industries. Petrochemicals, steel, and ceramics—critical to Iran’s economy—are suffering from operational inefficiencies due to unreliable energy supplies. In the food sector, plants reliant on gas for processing, such as dairy and canned goods manufacturers, face similar challenges.
#KHUZESTAN, #Iran, Mar.4, 2018. Fifteenth Day Of Strike By Workers Of Iran National Steel Industrial Group In #Ahvaz
protesting workers, chanted:
“We stand, we die, we take back our rights” “Our table is empty, cruelty and oppression is remaining” #IranProtests pic.twitter.com/BNSdtNxijI— NCRI-FAC (@iran_policy) March 7, 2018
While officials like Tehran’s Friday Prayer leader, Kazem Sedighi, attribute the crisis to “enemy psychological warfare” and “artificial inflation,” many experts disagree. Independent analysts cite systemic economic mismanagement and corruption as the root causes. Years of neglect in maintaining infrastructure, coupled with insufficient investment in new gas fields, have left Iran ill-prepared to meet rising domestic and industrial demand.
The state-affiliated Ensaf News recently pointed to mismanagement in its analysis: “The gas shortage has grown worse this year due to increased consumption in the residential sector and a lack of diversification in energy sources.”
The worsening gas crisis is more than an economic or industrial failure; it reflects the deep structural and systemic issues that have plagued Iran under the current regime. The inability to address fundamental needs like energy supply, compounded by widespread corruption and mismanagement, has fueled public outrage. The mounting economic pressures, persistent blackouts, and industrial shutdowns are intensifying calls for regime change. This crisis, coupled with growing dissatisfaction over broader governance failures, is setting the stage for another wave of nationwide uprisings, as citizens demand accountability and a complete overhaul of the political system.