Distribution of Profits from Gasoline Sales to Border Residents

The representative of Sistan and Baluchestan in the Supreme Council of Provinces has announced the allocation of profits from gasoline sales to 10,000 to 15,000 border families in this province. Iraj Rostam-Zahi stated on Saturday, July 24, in an interview with ILNA news agency that this plan began several months ago and so far 'three phases of this profit have been deposited into the accounts of the heads of border households.' Mr. Rostam-Zahi added that according to this plan, 'the agents designated by the government sell gasoline at the border at the globally approved price and pay the profits to households living within a 20-kilometer radius of the border.' He further noted that with the implementation of this plan, the sale of gasoline by individuals living outside the 20-kilometer radius of the border would no longer be 'profitable.' A member of the Saravan City Council added that 'provincial officials are pursuing the expansion of the coverage radius of this plan from 20 kilometers to 50 kilometers from the border.' This plan, as reported by some media, was put on the government's agenda in 2013, and according to this parliament representative, its implementation began several months ago. Fars News Agency described this plan in September 2013 as 'questionable' and 'legitimizing the outflow of the country's capital.' The news agency wrote that according to this plan, the government monthly allocates a certain amount of fuel based on the number of households for sale in border markets to applicants in border villages. According to this news agency, the people covered by this plan can also delegate the tasks of receiving, selling, and even marketing to the agent company. Abdul Karim Hashemi Nakhlabrahimi, a representative of the ninth parliament, also explained this plan by saying that 'in this plan, households with up to five members receive 500 liters of fuel monthly, and those with more than five members receive 1,000 liters monthly.' Hashemi Nakhlabrahimi added that 'with the implementation of this plan, the problem of smuggling petroleum products will decline, and many of its consequences in the region will disappear.' Mehdi Aboui, the deputy for prevention at the headquarters for combating smuggling of goods and currency, also stated in May 2013 that the profits from the legal sale of fuel are deposited into the bank accounts of border residents, and only 50% of it is withdrawable. Mr. Aboui added that 'the remaining 50% stays in the account so that the governor can create jobs for the people with that 50%.' This plan, in addition to Sistan and Baluchestan province, was supposed to be implemented in other border provinces as well. Efforts to reduce the volume of fuel smuggling and create employment and income for border families have been declared as the main objectives of this plan. In 2013, Ismail Kowsari, a representative of the ninth parliament, stated that approximately 10 million liters of fuel are smuggled daily from Iran's eastern borders.