Frequent power and gas outages in Fars province, like in other provinces of Iran, have created serious challenges for producers and workers, especially in the industrial sector.
What was previously an issue during summer has now extended into winter, leading to factory shutdowns and workforce reductions.
According to the state-run ILNA news agency, power outages have forced many industries—especially energy-dependent sectors such as steel, petrochemicals, cement, and food production—to partially or completely halt their production lines.
To compensate for this shortfall, some industries have resorted to using diesel generators; however, this solution comes with high costs and environmental consequences.
Small Industries Suffer the Most
Bahram Zanoobi-Tabar, the head of the Coordinating Council of Islamic Labor Councils in Fars province, warned about the risk of layoffs and industrial closures, stating that “small industries are the most affected by power and gas outages. These problems have created serious challenges for both employers and workers, jeopardizing their job security.”
He added, “Reduced production, declining productivity, rising costs, damage to machinery, customer dissatisfaction, and financial problems are among the main challenges that employers are facing.”
Zanoobi-Tabar also stressed that frequent production interruptions have led to decreased output, delays in order deliveries, and, in some cases, irreversible damage to sensitive equipment.
Economic Growth Affected by Power and Gas Outages
Jamal Razaghi, the regime’s vice president of the Fars Chamber of Commerce, told ILNA that “according to statistics provided by the head of the Economic Commission of the Iranian regime’s Majlis (parliament), power outages during this summer caused the country to lose one-third of its economic growth. Now, with gas shortages in addition to electricity cuts in winter, the damage in this period will be even greater than in the first half of the year.”
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Razaghi stated that the country’s economic problems stem from broader foreign policy decisions and the lack of support for the private sector.
He emphasized that handing over the economy to the private sector and reforming economic policies could help prevent the worsening of the crisis.
The Impact of Power Outages on People’s Livelihoods
One of the most significant consequences of declining economic growth is the sharp decrease in people’s purchasing power.
Razaghi stated that even if production continues, the decline in people’s purchasing power will push the market into recession. He said, “Industries face difficulties in selling their products even if they continue production. Even if we assume that power and gas outages have no impact on industrial activities, people’s inability to afford goods will further deepen the crisis in the industrial sector.”
This economic expert also pointed to the increasing tax burden on the private sector, saying, “It is not possible to run one part of the country through special privileges while placing all economic pressures solely on the private sector.”
“The government, in an attempt to compensate for budget deficits and pay pensions, has increased tax and social security pressures on production units, which has further aggravated the difficulties faced by industries.”
Continuous Power and Gas Outages Have Both Economic and Social Consequences
Zanoobi-Tabar warned that factory closures or reduced working hours, lower wages, increased workload, and job insecurity are direct consequences of this crisis for workers.
He emphasized that prolonged factory shutdowns will ultimately lead to workforce reductions and widespread unemployment.
Zanoobi-Tabar added, “Power and gas outages cause serious harm not only to employers but also to workers, leading to widespread economic and social repercussions.”
With the ongoing energy crisis in the country, the production and employment sectors are at serious risk.
Experts have warned that if the Iranian regime fails to reform its broader economic policies, this crisis could lead to widespread industrial shutdowns, rising unemployment, and a deepening of people’s livelihood difficulties.
