2007 Gasoline Rationing Plan in Iran - Fuel Smuggling

Fuel Smuggling

According to Iranian counter-smuggling authorities, 17 percent of daily fuel production equivalent to some 40 million liters (10.6 million US gallons) were being smuggled out of the country every day in 2009. This is while most of the smuggling concerns gasoline and diesel fuel, whereas Iran imports both of these to the tune of 30 million liters (7.9 million US gallons) every day. Smugglers are using "lakes of fuel", underground pipelines to neighboring countries and oil tankers on the Shatt al-Arab waterway. Facilities such as the Martyr Rajai Port Complex in Hormuzgan province are reportedly used by the IRGC to export state subsidized gasoline outside the country. Fuel smuggling has increased by 232 percent compared to last year's figures. Iran says its naval security forces have confiscated ten oil tankers smuggling 4,600 tons of Iranian fuel out of the Persian Gulf in 2008. As of 2012, smuggling to Pakistan and Afghanistan continues unabated because of price differential with these countries. According to the Iranian Police Chief, before the implementation of the subsidy reform plan, 20 million liters of fuel were trafficked out of the country daily. Now about one million liters of fuel is trafficked out of Iran every day despite increased domestic fuel prices caused by the Iranian targeted subsidy plan.