Issuance of Construction Permits for 200 Gas Stations in Iran for Shell and Total

The head of the Fuel Station Owners Association of the country announced the issuance of permits for 100 new fuel stations for each of the French company Total and Shell in Tehran and other parts of Iran. On Friday, October 1, Bijan Haj Mohammad Reza stated in a press conference that permits have recently been issued for the construction of 100 new fuel stations for each of the companies Total and Shell in Tehran and other areas of the country. Following the comprehensive nuclear agreement in July of this year, Iran has begun negotiations with both Shell and Total. Currently, both companies have announced that they are waiting for the lifting of Western sanctions against Iran, a matter that is likely to be realized in the first quarter of next year. Total and Shell have not yet officially confirmed the receipt of permits for the construction of gas stations. The head of the Fuel Station Owners Association stated that the goal of granting construction permits to major global oil companies like Shell and Total in Iran is to create a brand in the oil product supply and distribution industry in the country. He also noted that in a meeting attended by senior managers of the National Oil Products Distribution Company, a plan was proposed for leasing or selling fuel stations to oil refineries. Iran imports part of its gasoline consumption from abroad. According to an official report from Iran's Ministry of Oil, 6.5 million liters of gasoline were imported into the country daily during the first six months of the year. Currently, under Western sanctions, no European or American company is selling gasoline to Iran. Haj Mohammad Reza further stated that negotiations have been held with several oil refineries regarding the leasing or selling of some oil storage facilities and fuel stations, emphasizing that through this transfer process, the National Oil Products Distribution Company aims to create a brand in the fuel station construction and supply industry in the country. He mentioned that Iranian fuel station investors do not have the budget, financial resources, and facilities of companies like Shell and Total to create a brand in fuel station construction, stating, 'Currently, the capital of companies like Shell and Total is five times the total resources and capital of the National Iranian Oil Company and the Ministry of Oil.' The head of the Fuel Station Owners Association identified one of the main reasons for the challenges facing fuel stations as the low commission on gasoline sales, noting that with the current commissions, there is no possibility of creating a brand or improving the quantity and quality of fuel stations. According to an official report from the National Oil Products Distribution Company of Iran, there are currently 3,030 active gasoline and diesel supply stations in Iran.