CEO of the National Iranian Oil Products Distribution Company (NIOPDC) said on Tuesday that the average gasoline consumption in the calendar month starting August 22, which is a busy travel season in the country, had been reported at 132 million liters per day, up 8.5% from the same period last year.
Karamat Veis Karami stated that diesel use in Iran had also increased to reach an average of 65 million liters per day over the 13 days to September 3.
Veis Karami added that average gasoline use in the more than five months that have passed from the start of the current calendar had reached 123 million liters per day, up 7% from the same period last year.
Iran has been grappling with rising demand for fuel in recent years mainly because of low prices that have encouraged smuggling across the country’s vast borders.
One liter of gasoline is available at $0.05 in gas stations across Iran, a price much lower than those used in neighboring countries like Turkey and Pakistan.
Some reports estimate that Pakistan currently relies on fuel smuggled from Iran for nearly a third of its total demand.
The rising demand for gasoline in Iran has forced the government to resume imports after years of self-sufficiency in fuel production.
That comes as the newly-elected government in the country has promised it will tackle the issue of fuel overconsumption and smuggling by raising the prices despite concerns raised about the inflationary impacts of such a decision.
