While many road construction projects are on hold waiting for free asphalt (bitumen) from the government, a great deal of tar produced inside the country is exported, the people’s representative from Falavarjan County (Isfahan) in the Majlis said.
“Reports say we need 4 million tons of asphalt a year for domestic use and exporting this item does not help or solve problems,” Fars News Agency quoted Nasser Mousavi Largani as saying.
According to the budget for the current fiscal dyear, the government is obliged to allocate $500 million in tar to road-building projects.
Providing free tar to contractors provides incentive to carry out construction projects, leading to the development of urban and rural plans.
In 2014, the Majlis approved the supply and distribution of free tar for road projects, but regrettably the government does not enforce Majlis approvals, the lawmaker claimed.
Iran produces 5 million tons of tar a year, of which 3 million is exported to some Asian and African countries including Turkey and Georgia.
Between 2007 and 2011, Iran set the international price of bitumen in the region based on the quality and quantity of what it produced.
Ten million tons of tar is produced annually in the world. Iran used to contribute 10% to the world market in the past. However, its share has dropped due to problems arising from sanctions and export issues.
The US reimposed economic sanctions on Iran last year, targeting the oil, banking and industrial sectors.
In May 2018 US President Donald Trump tore up the landmark 2015 nuclear deal Iran had signed with the six world powers. In November he imposed a second round of sanctions, targeting the energy sector.
Different Views
“The Oil Ministry releases a million tons of Vacuum Bottom (from which asphalt is produced) into the deserts, while it can be used to construct roads. The ministry must explain the reason why it refuses to deliver VB to refineries for tar production,” the MP was quoted as saying.
“Five five months since the start of the current fiscal year (March) have passed and if asphalt needed to build rural roads is not provided within two months (when autumn rains begin), people living in the cold regions in the north, northwest, west and southwest, will face many problems,” he claimed, but did not elaborate.
While the government seems reluctant to provide road construction companies with free bitumen, the Ministry of Roads and Urban Development has said contractors can buy their tar from the market.
However, it would be difficult for contractors to do so since tar manufacturers have increased the price in recent months several times. The ministry apparently has not cleared its previous debts to contractors, the MP said.
