Iran Loses Nearly 10M Liters of Diesel per Day to Smuggling, Says Deputy Oil Minister

Jalil Salari, the deputy oil minister and managing director of the National Iranian Oil Refining and Distribution Company, said in an interview with the state-run Islamic Republic News Agency published on Saturday that Iran is losing nearly 10 million liters of diesel per day due to smuggling because of its competitive price. Diesel is sold in Iran for about $0.80 less than in its neighboring countries, creating an incentive for smugglers. Iran’s daily consumption of diesel in the transportation sector is now at 84 million liters, while it is estimated that the figure should not exceed 75 million liters per day, according to Salari. Iran has promoted the use of personal fuel cards and upgraded smart systems to combat smuggling. The government of Iran subsidizes fuel use, which creates a lucrative business for smugglers. Iranian naval forces have seized a large number of ships over the past few months for carrying smuggled fuel.