Iran (IMNA) - Figures from the Oil Ministry’s oil products company, NIORDC, indicate a daily reduction of five million liters in diesel consumption across the country’s vehicles and machinery sectors during the first five months of the Iranian calendar year, which began in late March.
This decline in domestic demand, coupled with a year-on-year production increase of three million liters per day in the same period, has enabled Iran to halt diesel imports altogether, the report states.
Additionally, NIORDC has boosted gasoil supplies to power plants by 27% from April to August compared to the previous year. Gasoil, a type of diesel used primarily in power plants and off-road machinery, becomes critical during colder months when natural gas consumption surges.
More than 80% of Iran’s power plants are connected to the national natural gas pipeline network; however, they rely on gasoil and mazut for electricity generation when natural gas demand peaks during winter.
NIORDC credits the sharp decline in imports to tighter controls curbing both domestic diesel use and fuel smuggling to neighboring countries. In July, the company highlighted measures restricting diesel distribution to motorists and farmers, thereby reducing fuel availability for smugglers along the borders.
Last year, Iranian government estimates revealed nearly 30 million liters per day of gasoline and diesel were smuggled abroad, motivated by price differences where fuel can cost up to 100 times more than domestic rates.
Iran currently offers the world’s lowest fuel prices, with a two-tier diesel pricing system capped at 6,000 rials (approximately $0.068) per liter.
The Central Headquarters for Combating Goods and Currency Smuggling stated in May that fuel smuggling causes an estimated annual loss of $4 billion to the country.
This latest development marks a significant step in Iran’s efforts to stabilize domestic fuel supply, reduce economic losses from smuggling, and strengthen energy security.
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