12 Million Liters of Fuel Smuggled Daily from Iran to Neighboring Countries

A member of the Iran Chamber of Commerce, Industries, and Mines has reported that 12 million liters of fuel are smuggled daily from the country, with an annual value of this smuggled fuel amounting to four billion dollars, of which 3.5 billion dollars is 'pure windfall profit.' Ali Shams-Ardakani stated on Sunday, September 4, that smugglers take the fuel to the city of Van in Turkey and barter it for clothing, shoes, and other products. Mr. Ardakani also claimed to have the names of individuals involved in the fuel smuggling to Turkey but refrained from disclosing them. He mentioned that the price of gasoline in Afghanistan is 40,000 tomans, and Iranian fuel is also smuggled into this market. Reuters reported last autumn, citing Pakistani officials, that four million liters of fuel are smuggled daily from Iran to this country and sold at low prices at gas stations. The Washington Post reported that the Islamic Revolutionary Guard Corps (IRGC) is at the center of the large fuel smuggling network in Iran. Mr. Ardakani did not explain how the daily smuggling of 12 million liters of fuel, which requires hundreds of large tank trucks, is carried out by ordinary people. However, the Washington Post had previously reported that the IRGC is a key player in this smuggling operation. Transparency International ranks Iran 149th out of 180 countries in terms of financial corruption. Due to the severe devaluation of the rial in recent years, Iran offers the cheapest gasoline in the world to its citizens, and the significant price difference between gasoline inside and outside the country exacerbates the smuggling issue. Mr. Ardakani stated, 'Smugglers illegally export fuel and simultaneously obtain cash by importing smuggled goods and selling them in Iran. They send fuel and import clothing, curtains, shoes, etc.' This Chamber of Commerce member described the fuel smuggling in Turkey in exchange for clothing as 'smuggling within smuggling' and estimated that this model of smuggling has destroyed nearly sixty thousand jobs in our consumer industries. So far, officials of the Islamic Republic have announced varying figures and statistics regarding the volume of fuel smuggling from the country. Jalil Salari, former head of the National Iranian Oil Refining and Distribution Company, stated in July that through monitoring the transportation sector and the electronic registration of cargo, a daily saving of 10 million liters of gasoline is achieved. He explained that 'according to reports, fuel smuggling occurs in such a way that diesel is traded at 300 tomans per liter while it is priced at 13,000 tomans at the borders of neighboring countries, which provides significant profits for opportunists and fuel smugglers.' At the same time, Malek Shariati, a member of parliament and member of the Energy Commission, stated that the daily smuggling of gasoline is five million liters and diesel is ten million liters.