Iranian President Masoud Pezeshkian said on Thursday there is no doubt that gasoline prices must rise, signaling that long-anticipated fuel reforms are moving closer despite fears of renewed public unrest.
Mohammad Noursalehi, head of Isfahan’s City Council, told the Iranian Labor News Agency (ILNA) that the Zayandehrud Dam -- the main source of water for central Iran -- is reaching critically low levels.
“If the current trend continues, even drinking water for citizens will be at risk within the next 45 days,” he said.
According to Noursalehi,the dam is releasing several times more water than it receives, and much of that flow never reaches Isfahan’s main treatment plant because a large portion is diverted or lost along the route through both legal and illegal withdrawals.
Five million people at risk
He warned that more than five million people in Isfahan, Yazd, Chaharmahal and Bakhtiari, and Qom provinces depend on the Zayandehrud for drinking, agricultural, and industrial water.
“This is no longer just an agricultural or industrial problem. People’s drinking water is in danger,” he said, calling for the immediate suspension of non-drinking water use.
Noursalehi urged the government to accelerate long-stalled water transfer projects such as the Kouhrang-3 tunnel and the southern Isfahan pipeline, saying that decades of delay had compounded the crisis.
“If these projects had been completed on time, we would not be facing this situation today,” he said.
The council head also warned of severe environmental consequences, noting that the complete drying of the Gavkhouni Wetland -- once a UNESCO-listed ecosystem -- threatens the region’s biodiversity.
Land subsidence is already visible across Isfahan’s plains, Noursalehi said, warning that groundwater depletion has caused the ground to sink in several northern districts, prompting the evacuation of some schools.
“If this continues, Isfahan’s centuries-old monuments could face serious structural threats,” he said.
Officials in Iran have recently acknowledged that 19 major dams across the country are below 20 percent of capacity, with some hydropower plants -- including Tehran’s Amir Kabir Dam -- forced to halt operations.
Environmental researchers say the country is nearing “water bankruptcy,” driven by decades of overuse, unscientific dam-building, and poor water management.
Autumn remains dry, reservoirs at record lows
The first month of autumn passed with almost no rainfall across most provinces, according to the national meteorological organization. Officials said precipitation this year has dropped up to 45% below seasonal averages, leaving many regions facing possible rationing of drinking water.
Ahad Vazifeh, head of the National Center for Climate and Drought Crisis Management, said on Thursday that “no significant rain is forecast for at least the next three weeks,” warning that water shortages in major cities, including Tehran and Isfahan, will persist.
“Even if winter brings above-average rain, it will not compensate for the current deficit,” he said.
Government data show that total water stored in Iran’s 193 main dams has fallen to 17.6 billion cubic meters -- just 34% of full capacity and down nearly a quarter from last year.
Inflows since the start of the new water year have dropped 39%, while the outflow from reservoirs has declined by 29%.
The Zayandehrud dam in Isfahan is now only 13% full, the Lar dam near Tehran 2%, and the Independence dam in Hormozgan 6%, according to the Energy Ministry.
Many southern and central reservoirs have reached “dead storage” levels, rendering water unusable for supply or power generation.
Experts say Iran’s worsening drought, coupled with climate change and policy missteps, is transforming water shortages into a potential national security concern. Hundreds of villages now rely on water deliveries by tanker, while protests over shortages have erupted periodically in several provinces.
Speaking during a visit to West Azarbaijan province, Pezeshkian acknowledged that raising fuel prices is unavoidable to address Iran’s worsening energy shortages but cautioned that any decision would require “careful planning” to avoid deepening economic hardship.
“There is no question that gasoline must become more expensive,” he said, according to state media. “But it is not a simple decision. We cannot act overnight or create more difficulties for people.”
His comments came amid intensifying debate over Tehran’s plans to introduce a new pricing system aimed at curbing soaring fuel consumption and smuggling.
Over the past two weeks, Iranian media have reported that the government is reviewing several reform scenarios, including multiple pricing tiers and possible changes to fuel quotas.
Last week, Khaneh Eghtesad published what it said was a leaked cabinet decree outlining a roadmap for “gradual correction” of gasoline prices. The government initially denied the report but later confirmed that the issue was under study by cabinet working groups.
Cabinet secretary Kamal Taghavi-Nejad said this week that fuel reform had been discussed but “no final decision” had been taken. A lawmaker, Amirhossein Sabeti, said the debate over introducing three fuel price tiers had become serious in parliament.
Energy officials say domestic gasoline consumption has surged well beyond refining capacity, forcing costly imports and draining subsidies that analysts estimate at more than $30 billion annually.
Pezeshkian has pledged to overhaul Iran’s energy subsidy system, arguing that maintaining the current artificially low prices is unsustainable. “Even water costs more than gasoline in Iran,” he said earlier this week.
The last major fuel price hike in November 2019 sparked nationwide protests that were met with a violent crackdown. Rights groups and Reuters reported that at least 1,500 people were killed.
Officials have since stressed that any future reform would be gradual and paired with compensation measures for low-income households. The administration insists it will not repeat the sudden price shock of 2019.
Economists warn that aligning prices with real production costs could sharply raise inflation but may also help reduce smuggling and waste. The government is expected to unveil its energy reform framework before submitting next year’s budget in December.
