Iran to cap petrol sales to curb smuggling

Low fuel prices have led to high consumption, with Iran’s 80 million population buying an average of 90 million liters per day. (AFP)
Updated 20 November 2018
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Iran to cap petrol sales to curb smuggling

  • Iran has some of the most heavily subsidized petrol in the world
  • Fuel cards were first introduced in 2007 with a view to reforming the expensive subsidies system

TEHRAN: Iran is reintroducing fuel cards that will cap petrol purchases in a bid to combat rampant smuggling, state media reported on Tuesday.
Smuggling has boomed in recent months as the rial has plummeted against the dollar in the face of the reimposition of crippling US sanctions following Washington’s withdrawal from a landmark 2015 nuclear deal between major powers and Tehran.
The Islamic republic has some of the most heavily subsidized petrol in the world, with a pump price of around $0.08 per liter (less than two US cents per gallon).
Low fuel prices have led to high consumption, with Iran’s 80 million population buying an average of 90 million liters (20 million gallons) per day, according to state news agency IRNA.
They have also fueled very high levels of smuggling — estimated at around 10 to 20 million liters (2.2 million — 4.5 million gallons) per day, IRNA said.
Much of it heads across the border to Pakistan, where petrol costs 10 times, and diesel around 40 times, as much as in Iran.
Fuel cards were first introduced in 2007 with a view to reforming the expensive subsidies system. High limits were set — 180 liters (40 gallons) per day for the average driver — since the focus was on curbing large-scale smuggling.
The state-run National Iranian Oil Products Distribution Company said drivers would have three weeks to register for the new electronic cards setting a daily limit on petrol purchases.
The limit has not yet been set, but was introduced “in order to prevent fuel smuggling,” the firm said in a statement on Monday.
It said the return to a card system “does not mean there will be fuel rationing and price hikes.”
But Oil Minister Bijan Namdar Zanganeh has said a price increase may be necessary in the coming year — a move that remains highly sensitive in a country that boasts the world’s second-largest reserves of gas and fourth-largest of oil.


Israeli police arrest 19 Palestinians at Jerusalem holy site

Updated 20 February 2019
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Israeli police arrest 19 Palestinians at Jerusalem holy site

JERUSALEM: Israeli police say they have arrested 19 Palestinians as clashes broke out at a contested Jerusalem holy site.
Police say dozens of Palestinians participated in a prayer protest Tuesday, attempting to breach a section of the compound that has been closed by Israeli court order for years.
Palestinian medics reported that several protesters were injured in the standoff.
The incident follows a similar scuffle on Monday in which Palestinians tried to break the gate that Israel placed on the closed area last week.
The compound, revered by Jews as the Temple Mount and by Muslims as the Noble Sanctuary, is considered the holiest place in Judaism and the third holiest in Islam.
Any trace of Israeli security interference in the shrine, home to the Al-Aqsa Mosque, can ignite violence.