DMEA: Iranian smuggling reaches all-time high

Iran’s deputy oil minister Jalil Salari told state media this week that around 10mn litres per day of diesel is being smuggled out of Iran, owing to its competitive market price.

Speaking to the Islamic Republic News Agency (IRNA), he said that diesel consumption from the country’s transport sector is now at 84mn lpd, exceeding the anticipated level of 74mn lpd.

Differences in diesel prices between Iran and its neighbours make smuggling the fuel highly profitable, as Iran’s prices sit around $0.8 below that of neighbouring countries owing to subsidies provided by the Iranian government.

In an attempt to combat illicit trade, Iran has encouraged the use of personal fuel cards and upgraded smart systems to be able to monitor and identify suspicious transactions, Salari added.

The country has also staged a number of naval operations to combat smuggling, and has seized a large number of ships carrying smuggled fuel over the last few months.