Tehran, Iran – In response to severe fuel shortages and mounting economic pressures, the Iranian government has introduced new measures to reduce costs for public sector workers and citizens. Starting September 23, government employees will work from 8am to 1pm in office, with the remainder of their hours conducted remotely until the end of the current Iranian year in late March 2027.
Agencies are also required to designate one weekly day for employees and managers to use public transportation. Government ministers have promoted this shift by sharing videos of themselves using the metro system. Additionally, metro and bus rapid transit (BRT) services will remain free through mid-November to encourage reduced car usage. Long-term, worn-out government vehicles will be replaced with electric, gas-powered, or hybrid models, though full implementation is expected to take years.
University operations will be partially reopened with some classes offered online. Government offices must also reduce energy consumption by turning off heating and lights after hours, with separate guidelines forthcoming for schools, healthcare facilities, and other services.
President Masoud Pezeshkian issued a directive on September 12 mandating remote work for eligible employees to cut state expenditures on fuel, electricity, and natural gas. “We have begun consumption savings with the government,” Pezeshkian stated, framing remote work as consistent with broader energy-saving initiatives for the public.
Historically, Iran has faced energy crises due to mismanagement and outdated infrastructure, but current challenges have intensified following conflicts with the United States and Israel. In early September, the government increased fuel prices for high-usage tiers, effectively doubling costs for consumption beyond 110 liters (29 gallons) monthly. Import restrictions on vehicles and certain cars now place them in the highest-cost fuel tier.
Data from the first five months of the Iranian year (ending August 22) showed daily petrol production at 122 million liters against a consumption of 132 million, creating a 10-million-liter deficit. This gap persists into the sixth month. The US naval blockade on southern ports since July has halted fuel imports and blocked oil exports via supertankers through the Strait of Hormuz, disrupting foreign currency earnings. Some crude oil stored beyond blockade lines is gradually sold to China.
Bombings of oil and gas infrastructure, petrochemical facilities, and fuel depots by US and Israeli forces have further impacted production. Oil Minister Mohsen Paknejad confirmed in early September that “a significant portion of production capacity has now been restored, and the process is continuing.”
Widespread inflation has severely affected Iranians, with the Statistical Center of Iran reporting a 10.1% year-on-year decline in real GDP and a 26.4% drop in oil and gas extraction between March and June 2026. Industrial and mining sectors contracted 14.7%, construction fell 6.4%, services declined 4.8%, and transport, storage, and communications dropped 17%.
Zabihollah Salmani, head of the Administrative and Employment Organization, stated that over 2.43 million people are on the government payroll. Including municipal workers, firefighters, social security employees, and NGOs, this number exceeds four million. Average monthly government salaries equaled 240 million rials ($104) by March 2026. When questioned about potential workforce reductions, Salmani admitted no precise data exists, though agencies are being tasked with submitting analyses.
Amir-Hossein, a researcher at a government-affiliated University of Tehran center, shared that remote work has improved his productivity since the policy began. “I get more work done at home than in the office,” he told Al Jazeera, requesting anonymity for security reasons. Working from home has also reduced his commuting costs via ride-hailing apps.
An economist familiar with Iran’s situation described these policies as emergency measures rather than long-term solutions. Decades of corruption, inefficiency, and mismanagement have compounded existing challenges, sparking debate over government capacity and structural reform.
