Iran: Dual Pricing Can Help Boost Export, Combat Fuel Smuggling

Reviving the gasoline rationing system with two rates can help curtail rampant smuggling and help boost exports, a board member of the Iranian Oil, Gas and Petrochemical Products Exporters’ Association said.
“For the first time in its history, the National Iranian Oil Company has started selling 40 million liters of gasoline per week on average to foreign markets via the Iran Energy Exchange. If and when tariffs rise, consumption is expected to reduce. Fuel surplus will rise and exports can be boosted,” Hamid Hosseini was quoted as saying by ILNA.
The yawning gap between gasoline prices in Iran (7 cents) and neighboring countries at around 100 cents has turned fuel smuggling into a lucrative business and experts believe that selling gasoline at home at higher prices can and will address the chronic problem.