Surge in Gasoline Consumption in Iran; Statistics Become 'Confidential'

While statistics indicate a surge in gasoline consumption in the country, Tasnim News Agency has reported that the Iranian Ministry of Oil has not provided any statistics on gasoline consumption for the past month and a half, and inquiries from this news agency to the relevant authorities have gone unanswered. The latest official statistics published by the National Iranian Oil Refining and Distribution Company show that daily gasoline consumption in Iran peaked at 91.7 million liters during July, reflecting an 8.5% increase compared to the same month last year. The average daily gasoline consumption in the country during the first four months of the year was approximately 86.6 million liters, indicating a 9.6% growth compared to the same period last year. Tasnim reported on Tuesday, September 4, that according to the official statistics provided, daily gasoline consumption reached nearly 122 million liters on July 31, after which the relevant authorities refrained from announcing gasoline statistics. Official figures indicate that the country's gasoline production in July was 87 million and 300 thousand liters, but Iran recently launched the second phase of the Persian Gulf Star Refinery and announced that daily production has reached 95.5 million liters. Iranian officials have not yet clarified why gasoline consumption peaked at nearly 92 million liters in July and what has happened since then. However, with the significant drop in the value of the rial against the dollar, the price difference of gasoline in Iran and neighboring countries has sharply increased, and it is likely that part of the reported gasoline consumption has been smuggled to neighboring countries. Currently, each liter of gasoline in Iran costs about 10 cents, while, for example, the price of gasoline in Pakistan, Turkey, Afghanistan, and Iraq is 75 cents, over one dollar, 75 cents, and 63 cents, respectively. In this context, IRNA reported on Monday, September 3, that smugglers are transporting diesel, gasoline, and various fuels from Iran to eastern and western neighbors, reaping substantial profits. This report adds that fuel smuggling is a long-standing problem in the Iranian economy, with the main root of this type of smuggling stemming from the price differences of fuel within Iran and neighboring countries. The Iranian state news agency writes that alongside the severe fluctuations in the currency rate, which have increased the attractiveness of fuel smuggling, gasoline consumption in the country has also been on the rise. According to this report, there are no official reports on the amount of gasoline and fuel smuggling in the country, and no agency has provided statistics on this matter. However, reports from border areas indicate a boom in the smuggling of gasoline, diesel, and other fuels. IRNA states that according to the law, many governmental and state organizations are involved in combating fuel smuggling, but due to various considerations, they refrain from fulfilling their duties. This report does not mention the names of the agencies, but recently Hassan Rouhani stated in parliament that part of the mission to combat smuggling lies with the Islamic Revolutionary Guard Corps.