Iran faces rampant oil smuggling

Iran’s Deputy Economy Minister Mohammad-Reza Farzin said that about 250,000 barrels per day of gasoline, diesel fuel and other oil products are being smuggled out of Iran every day. That is about 15 percent of Iran’s 1.6 million barrels per day (bpd) of oil demand. The comments by the deputy minister highlight the problems Iran faces when it comes to production, consumption and distribution of heavily-subsidized fuel. “The news and information on smuggling in recent years are very worrisome, and they indicate that a major portion of the country’s diesel fuel and gasoline are being smuggled to neighboring countries (where prices are higher),” Farzin said. “Despite the fuel rationing in place, 40 million liters of fuel are being smuggled daily out of the country,” Farzin was quoted as saying by the Hamshahri Daily. (September 25, 2009)