If the state-run National Iranian Oil Refining and Distribution Company was not self-reliant in gasoline production, it would have to spend an estimated $20 billion to import the fuel in the past two and a half years under tight economic conditions.
The company's gasoline output is over and above domestic demand by 20 million liters a day creating opportunity for exports, ISNA reported.
NIORDC gasoline production capacity has reached 110 ml/d while consumption is less than 90 ml/d.
Company data show that between1974 and 1976 gasoline was never imported. With the rapid increase in auto production and imports, importing fuel became a norm -- climbing to four million liters in 1987 and 17 million liters a day in 2008.
However, from 2008 there was a decline and in 2016 daily imports were in the range of 10 million liters. In 2017 when the Persian Gulf Star Refinery's first phase went on stream in Hormozgan Province imports almost halved.
PGSR’s capacity has reached 480,000 barrels a day and on average 45 million liters of gasoline and 17 million liters of diesel are produced at the huge complex.
"NIORDC stopped importing gasoline in March 2018 and its goal to become an exporter was achieved a year later,” Alireza Sadeqabadi, the CEO said.
Gasoline is exported to Iraq, Afghanistan, the Persian Gulf Arab states, Iraqi Kurdistan and offered on the energy stock exchange in Tehran.
Other fuels including kerosene, diesel and jet fuel are also exported, especially to the Arab neighbors, the head of NIORDC said.
If the NIORDC had not raised capacity, it would be obliged to import 40 million liters of gasoline per day. Given the FOB gasoline price at 50 cents per liter, the company would have to dole out $8 billion in annual import bills.
On average 90 million liters of gasoline is used in Iran every day or 1.12 liters per capita. This amount is 1.08, 0.91, 0.42, 0.22 and 0.05 in Malaysia, Russia, Brazil, China and India, respectively.
It has been reported that motorists bought 73 million liters of gasoline per day in 2015, which rose 8% to 80 million liters/d one year later. Consumption increased again in 2017 to 88 million liters/d. Since 2018 consumption has hovered around 90 ml/d.
Referring to diesel output, Sadeqabadi said his company’s output was less than 90 ml/d in 2015 but now it produces 115 ml/d.
Export Revenue
In related news, the news agency quoted Mehdi Mirasharfi, head of the Islamic Republic of Iran Customs Administration, as saying that in the last six months gasoline export generated more than $1 billion.
“Gasoline comprised 1% of the total export and was underpinned by the decline in domestic demand and rising production.”
Gasoline export is being promoted to manage the expanding inventory largely due to falling domestic use due to the Covid-19 pandemic. As is the case in most countries hit hard by the deadly disease and the ensuing lockdowns, gasoline demand in Iran has also plunged.
Up until Sunday morning health authorities in Tehran said over 2.6 million had been infected by the coronavirus and 75,000 deaths were registered.
In November 2019, the NIORDC announced that gasoline had been rationed and prices raised by at least 50%.
Private car owners can buy 60 liters of subsidized gasoline every month with a fuel card at 15,000 rials (13 cents) per liter, up 50%. Additional purchases (maximum 250 liters a month) will cost 30,000 rials (26 cents) per liter, up 200%.
Fuel quotas (60 liters per car per month) were first introduced in 1981 one year after the start of the 1980-88 Iraq-Iran war and again in 2007. In six months consumption fell by 25 million liters. Eight years later in May 2015, the government announced gasoline would be sold at a single price of 10,000 rials without any restrictions and the fuel cards seemingly became a thing of the past.
