Imports into Iran have increased to 63,279 barrels per day from 51,986 bpd in September.
Sanctions have prevented oil majors and big international players from selling fuel to Iran, leaving Tehran struggling to meet its fuel requirements and driving up import costs.
US sanctions give the country scope to take action against the US operations of companies that sell fuel to Iran, while the European Union bans the sale of equipment that can be used in Iran’s refining sector.
There was no offloading of gasoline cargoes in May through August, the shipping data shows, while in January to April a total of seven cargoes were imported.
Shipping documents obtained by an Iran-based source familiar with monthly gasoline arrivals at the OPEC member’s port operations did not list the size of the cargoes arriving.
“As you know some of these operations are not documented and can be done offshore without documentation to be processed with the port,” the Iran-based source said.
“We have, however, seen the last two months’ frequency of arrivals increasing from earlier in the year.”
Iran’s gasoline imports have slumped by as much as 95 percent since 2007, as a combination of expanding refining capacity and reduced domestic subsidies for gasoline have helped to balance out sanctions aimed at cutting off Tehran’s fuel supply line, according to the Joint Oil Data Initiative (JODI).
Gasoline imports into Iran had fallen from 204,000 bpd in June 2007 to at least a 10-year low of 10,000 bpd in June 2011, JODI data shows.
“Sanctions are having some impact, but if you look at the September and October imports, it looks like imports seem to be on the rise,” a source familiar with gasoline trade into Iran said.
“If this continues, then you can conclude that gasoline imports into Iran are back on. With everything going on in Europe, the economy in Iran has fallen out of the spotlight.”
The key to sustaining imports at the levels seen in September and October will be how effective Tehran’s attempt to maintain subsidy reductions for the motor fuel are.
“Whether or not it continues to rely on foreign imports will depend on how successfully Iran can sustain the lower subsidies in the face of hyper-inflation, in part caused by the rapid increase in prices for gasoline and other commodities,” said Mark Dubowitz, executive director of a Washington D.C -based think tank.
“This also suggests that companies without exposure to the US markets are prepared to risk US sanctions.”
On Tuesday, a US official said the country would impose more sanctions on Iran, possibly on its commercial banks or front companies. However, it looked unlikely that it would take further steps against its oil and gas industry or go after its central bank.
The International Atomic Energy Agency (IAEA), the UN nuclear watchdog, completed a new report that said Iran has worked on developing an atomic bomb design and may still be conducting relevant research.
