Open Database: The Asphalt Mafia Smuggles One Billion Dollars Out of Iran Annually

On Tuesday, July 9, the Open Database of Iran reported that 65% of the four million tons of asphalt provided free of charge to government institutions and the Islamic Revolutionary Guard Corps (IRGC) for road construction is exported outside of Iran. According to the report, the annual revenue from smuggling this petroleum product out of Iran is equivalent to one billion dollars. Iran's refining industry, with a production capacity of over 2.2 million barrels per day, makes Iran the second-largest refining power in the Middle East after Saudi Arabia. Iranian crude oil has a higher 'surplus' compared to West Texas Intermediate and Brent crude oil, making it very suitable for asphalt production. Additionally, Iran's land access to countries like Afghanistan, Pakistan, Turkey, and Armenia, which require asphalt, provides significant export markets. The report states that although most of Iran's asphalt (four million tons out of a total of five and a half million tons) is given free of charge to government institutions and the Basij for road construction, 65% of this free asphalt (2.5 million tons) is sold to Iran's neighbors, with the proceeds benefiting individuals and interest groups. Based on the regional average price of asphalt, which is $410 per ton, the annual revenue from smuggling this petroleum product out of the country amounts to one billion dollars, which could be used to build 11,000 small one- or two-class primary schools or 7,000 small healthcare centers in underprivileged areas annually. The misappropriation of the proceeds from the sale of free asphalt by the Basij and other government institutions occurs while one of the main reasons for the annual death of 17,000 Iranian citizens in road accidents is the lack of appropriate road standards. The return of the 'free asphalt' rent for the government and the IRGC in the annual budget amounts to 20 trillion tomans. The Union of Oil Sellers in Pakistan: More fuel is being smuggled from Iran. The government's push to increase fuel prices; Shargh newspaper: Gasoline consumption statistics have 'disappeared.' The project to increase gasoline prices has entered a new phase; the elimination of fuel cards for gas stations. Road accidents in Iran; 405,000 people have died in traffic accidents over the past two decades. Iranian Road Police: 116 people died in traffic accidents during Eid al-Fitr.