Challenges of Energy Carrier Consumption Management in Iran

Energy carriers as one of the important inputs of production as well as consumer goods of households, play a very important role in determining production costs and household expenditures. Price fluctuations in each of these carriers will cause fluctuations in production costs, consumer spending, and ultimately inflation. The extent of this fluctuation, depending on the importance and share of each carrier, can be examined in the total basket or in the issues of production and consumption. These oscillations can be divided into two parts: "direct load" and "indirect psychological load". Indirect psychological burden shapes the expectations of households and producers, and direct burden reflects the direct impact of price fluctuations. Statistics show that the relative price of energy carriers is lower than the price of other domestically produced goods or energy prices in the region and the world, and this gap between the price of domestic energy carriers compared to world prices has led to its growth over the last decade Accelerate and increase the share of carrier costs in the total consumer basket. Identify the gap between the mentioned variables, the mechanism of presenting corrective or supportive, and institutional policies to reduce the possible negative consequences and put the economy on the path of increasing the efficiency of production factors. This article examines the challenges of managing the consumption of energy carriers in Iran.