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Gas oil smuggling from Iran to Turkey, Pakistan on the rise

26 November 2012 19:38 (UTC+04:00)
Gas oil smuggling from Iran to Turkey, Pakistan on the rise

Gas oil smuggling from Iran to Turkey and Pakistan is on the rise, Managing Director of the National Iranian Oil Products Distribution Company (NIOPDC) Jalil Salari said on Monday.

"Gas oil is much cheaper in Iran compared to the neighboring countries," Salari said, Mehr news agency reported.

"Turkey and Pakistan are the major destinations for smuggled fuel," he added.

Deputy Oil Minister Alireza Zeyqami stressed on Sunday that some 6 million liters of gas oil is being smuggled from Iran each day.

The prices of fuels in neighboring countries are 7 or 8 times higher than Iran, so smuggling gasoline and gas oil has created a great market for the smugglers, Alireza Zeyqami said previously.

"Iran needs to increase the price of fuels in order to prevent smuggling," Zeyqami said.

Considering the official reference rate of 12,260 rials to the US dollar, the real price of gasoline in Iran is 10,000 rials (about 82 U.S. cents).

Currently gasoline is sold at two prices: a 60-liter monthly allowance at 4000 rials (33 cents) per liter, and any amount above that at 7000 rials (57 cents) per liter.

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