Limited Refining Capacity, Smuggling Force Iran To Import Fuel

Iran had the first refinery in the Middle East at Abadan in 1912, one of the largest in the world at the time.
Iran had the first refinery in the Middle East at Abadan in 1912, one of the largest in the world at the time.

Iran has started importing diesel fuel again because the amount of its consumption has surpassed the production capacity of the country’s refineries.

An unnamed informed source told Mehr news agency on Saturday that the resumption of imports was not unexpected due to the imbalance between demand and supply.

The source added that Iran is importing diesel from countries to the north along the Caspian Sea, without elaborating on the exact supplier. Russia could be one possible source.

According to the source, gasoline imports will also start soon because consumption will exceed production at refineries.

Mehr says according to data by the National Iranian Oil Refining and Distribution Company (NIOPDC), the amount of gasoline production and demand will be equal in a couple of weeks.

NIOPDC head Keramat Veis-Karami recently said that the average daily gasoline consumption increased by about 15 percent this year compared with the figure in the previous year when there were frequent pandemic restrictions.

The report added that slowdown in the process of building refineries and the rise in consumption are the reasons for Iran to become a gasoline importer. The severe shortage of natural gas that has led to an increase in diesel consumption in power plants and industries can be another factor. American sanctions also play a role in slowing down refinery upkeep.

However, in January, the Washington Post uncovered a large diesel smuggling network, revealing the role of the Revolutionary Guard in the illicit trade.