Increase in Gasoline Consumption in Iran; Rumors of Importing Gasoline from Russia at Higher Prices than Global Rates

Following an unprecedented increase in gasoline consumption in Iran, some reports indicate the possibility of imports from Russia at prices higher than global rates to compensate for the imbalance of this strategic petroleum product. In this context, the head of the Alternative Fuels Union announced that gasoline consumption in the country has grown annually by an average of 6 to 7 percent, with current daily consumption exceeding 100 million liters. Ahmad Alavi, an economist residing in Sweden, describes the imbalance between production capacity and consumption of petroleum products in Iran as predictable. This economic expert believes that establishing refineries to increase gasoline production requires lifting sanctions, international cooperation, and Iran's entry into competitive global markets. According to Ahmad Alavi, Iranian petroleum products are not competitive internationally due to their low quality, and the Iranian government's actions in selling petroleum products through intermediaries have resulted in profits from these transactions flowing into the pockets of brokers instead of returning to the country's economic cycle. The gasoline shortage has led Iranian officials to begin importing this product years ago. Although imports from some countries, such as Russia, were previously halted due to low quality, the head of the Alternative Fuels Union recently mentioned the possibility of resuming gasoline imports from Russia. Recently, ILNA news agency reported, citing an expert, that Iran has recently purchased 30,000 tons of gasoline from Russia at a price $12 higher than the global rate. A few years ago, the head of the Fuel Station Owners Union, Bijan Haj-Mohammadreza, announced that gasoline transactions with Russia, Turkmenistan, and Kyrgyzstan were halted due to their low Euro 4 gasoline quality, and instead, gasoline was imported from countries such as Italy, India, Japan, and the United Arab Emirates. Ahmad Alavi, in an interview with the Persian section of Voice of America, considers the imposition of expensive and low-quality Russian gasoline on Iran a result of the Iranian government's lack of active presence in the competitive petroleum product market. Some experts cite the low price of gasoline as one of the main reasons for the increase in consumption of this petroleum product and consequently its imports. Previously, the increase in gasoline prices and its impact on the rising costs of goods and services has led to public outrage. The sudden increase in gasoline prices in November 2019 resulted in widespread protests, with hundreds of protesters killed and injured by the Iranian government. People are concerned about the rise in gasoline prices, the determination of the thirteenth government to increase gasoline prices; the gasoline pot has run dry. Officials of the Islamic Republic have declared a 'critical situation' for gasoline and diesel. The government's move to increase fuel prices; Shargh newspaper: Gasoline consumption statistics have 'disappeared.' Media whispers about the rise in gasoline prices; domestic gasoline production is not cost-effective. The worn-out scenario of confirmation and denial has begun; rumors of an imminent increase in gasoline prices.