Economy, Domestic Economy

Transit Fee Spat With Turkey

Transit Fee Spat With Turkey
Transit Fee Spat With Turkey

The row between Iran and Turkey over truck transit fees has heated up lately due to hikes in passage fees. The Turkish government decision to increase border crossing fees for Iranian trucks after 20 years has triggered a hot debate.

According to a memorandum of understanding (MoU) signed between Iran and Turkey back in 1994, the two sides agreed not to charge trucks crossing the border. The agreement excluded fees to compensate for the costs of roads maintenance.

Turkish officials say the move was in response to the transit fees Iran has been charging Turkish trucks recently, since Ankara has continuously urged a reduction in the fees over the years. Turkish trucks paid over $1 billion to Iran for the differences in fuel prices between the two countries in the last decade, and this amount will rise to $2.5 billion in the next decade, according to our calculations,” said Fatih Sener, a senior member of Turkey’s International Transporters Association (UND), which represents the Turkish international freight transport sector.

Iranian officials argue that Turkey has violated the agreement it signed 20 years ago by its latest decision.

Iran has charged Turkish trucks because fuel in Iran has been cheaper than that in Turkey. “Over the past 20 years, Iran has charged Turkish trucks €25 (about $31) per 100 kilometers of traveling in Iran just to compensate the difference in fuel prices,” Iranian deputy road minister, Davood Keshaverziyan, said.

Iran and Turkey feel the urgent need to create new alternative routes to ease high truck traffic on Iranian roads.