Tasnim News Agency’s report on Tuesday cited figures from the Ministry of Petroleum Products Company (NIORDC) that showed that demand for diesel in the country’s vehicle and machinery sector fell by 5 million liters per day in the first five months of the calendar year that began in late March.
The report states that a decline in domestic diesel consumption has allowed NIORDC to cut its imports to zero.
Diesel production in Iran has increased by 3 million liters per year in the five months from late August to late August, further increasing domestic supply.
The report said NIORDC increased supply to Gasoil’s power plants by 27% from April to August compared to the same period last year.
Gasoil is a type of diesel used in power plants, off-road vehicles and machines.
Over 80% of Iranian power plants are connected to the country’s natural gas pipeline network, but they are forced to use gasils and mazut to generate electricity during the cold season of the year when demand for gas increases nationwide.
NIORDC figures showed that closer controls on domestic use and smuggling into neighbouring countries are more stringent, which is the main factor contributing to a decline in diesel imports to Iran over the past five months.
In a July statement, the company reported a significant drop in diesel, saying it was a result of a better check on smuggling. This includes restrictions on the delivery of diesel to drivers and farmers, which reduced the reach of diesel supply to boundary smuggling.
Government estimates released last year suggest that around 30 million liters of gasoline and diesel are smuggled into neighboring countries per day.
Iran has the cheapest fuel prices in the world, and currently has a diesel two-tier pricing system that doesn’t exceed 6,000 rials ($0.068) per rial.
Iran’s Central Headquarters for Commodity and Currency Smuggling said in May that fuel smuggling is causing the country to lose around $4 billion a year.
MNA/presstv