INSIGHT

Iranians are accused of waste while struggling with shortages

Dalga Khatinoglu
Dalga Khatinoglu

Oil, gas and Iran economic analyst

A woman walks pulling along her shoppings, Hamedan, Iran, June 8, 2025
A woman walks pulling along her shoppings, Hamedan, Iran, June 8, 2025

People in Iran are often accused of contributing to the country’s economic woes through wasteful habits—not just by officials, but by one another. But how much truth is there to these claims?

People in Iran are often accused of contributing to the country’s economic woes through wasteful habits—not just by officials, but by one another. But how much truth is there to these claims?

One common claim is that Iranians use far more electricity than other nations. But data from Iran’s Energy Ministry shows that per capita household electricity consumption is about 1,100 kilowatt-hours per year—40% lower than the EU average, and well below usage in the US, Canada, Japan, or even many neighboring countries.

It’s the same story with food.

Iran’s agriculture minister recently criticized Iranians for “excessive consumption” of sugar and cooking oil, asserting that government subsidies are being squandered.

But that assertion appears to contradict data from the UN’s Food and Agriculture Organization (FAO), which shows that Iran’s per capita consumption of both items is below the global average and significantly lower than in nearby countries like Turkey.

Last year, Iranians consumed 2.3 million tons of cooking oil, compared to 3.5 million tons in Turkey, which has a similar population. On a per capita basis, Iranian consumption is 30% lower than the global average.

The minister also claimed that 90% of Iran’s cooking oil is imported at subsidized rates, yet FAO data puts the figure closer to 56%, with imports steadily declining over the past three years.

Sugar tells a similar story. Iranians consume about 10% less than the global average, and nearly half as much as Turks. Far from being excessive, these levels reflect increasing constraints on household consumption.

Chasing the basics

These accusations also overlook a crucial fact: food inflation in Iran is out of control. The price of cooking oil surged 20% in just three months, according to a report by economic outlet Tejarat News on Monday. 

Iran’s Statistical Center reports annual inflation of 31% for cooking oil and 41% for sugar.

Such price spikes make basic goods increasingly unaffordable for most households. And the toll is visible in declining food security.

FAO data shows that per capita meat consumption in Iran has fallen by 40% over the past decade, while dairy consumption has dropped by 30%.

A senior food industry official said last week that the average Iranian now consumes 7–10 kilograms of meat per year—consistent with FAO’s estimate of just over 8 kilograms, down from 12 kg just a few years ago.

“Meat consumption in Iran is deeply unequal—some eat nothing, while others manage 20 kilograms a year,” said Masoud Rasouli, secretary of the Meat Production and Packaging Association, adding that the global average is 32 kilograms.

The figures don’t lie: Iranians are not consuming too much—they’re getting by with less.

Contrary to the official line—and even public opinion—excess is not a national trait. It’s an alien concept to the majority chasing the basics.