By Fariba Raad | 2024-12-20

As the Iranian regime hails the launch of a satellite into orbit, millions of Iranians are struggling with freezing temperatures and prolonged blackouts amid a crippling energy crisis.

Gas shortages and power rationing have plunged cities into darkness, leaving families without heat in sub-zero temperatures.

While the regime celebrates its space 'achievement,' observers note the irony that as the world's third-largest natural gas producer, Iran cannot meet its citizens' basic energy needs.

The Iranian regime has slashed natural gas supplies to industries by 20% since October, including in Yazd, a key steel production hub, per Tabnak news website.

"This policy has inflicted enormous damage on what was once a lucrative market for steel and cement," said Azerbaijan-based energy expert Dalga Khatinoglu.

"The government does not seem to realize that the policies will soon paralyze the economy," he told Pishtaz.

Decades of mismanagement

Iran loses over 20 billion cubic meters of gas annually through waste, equivalent to $10 billion that could have been reinvested, Khatinoglu noted.

According to the World Bank's 2023 global gas flaring tracker, "increased flaring intensity suggests that there has been a lack of corresponding investment in gas infrastructure and utilization."

Electricity systems also are buckling under the strain.

"Nearly 14% of the country's electricity is wasted in the aging production networks, which amounts to 40% of the electricity consumed by households," Khatinoglu said.

Meanwhile, about 85% of Iran's petroleum products are generated in pre-1979 refineries that operate at reduced capacity, producing primarily bitumen and mazut -- a toxic, environmentally damaging fuel.

Only a small fraction of the output complies with international fuel standards, according to Khatinoglu.

Misplaced priorities

The Islamic Revolutionary Guard Corps (IRGC) now controls up to 50% of oil export revenues, a December 18 Reuters report revealed.

Much of this funds the Iranian regime's regional proxies rather than addressing domestic energy needs.

The regime's decision to prioritize its space program reflects a deepening disconnect between state ambitions and public welfare.

"Diversification of energy sources is crucial," George Mason University senior fellow Umut Shokri told Pishtaz. "Long term planning is required to secure an annual investment of $4 billion for the power industry."

As temperatures drop, so does public tolerance, with some taking to social media to vent their frustrations.

"Fuel shortage in the bitter cold has brought people to the brink of desperation," social media user Khanum Raad wrote on X.

In another post on X, social media user Nima Farzaneh captured the frustration: "14 hours of blackouts in the cold weather. I have nothing else to say."