11 June 2014 - 14:40
  • News ID: 219101
Official Speaks of Reasons for Iran Gasoline Imports

TEHRAN June 11 (Shana)--In an exclusive interview with Shana, NIOC’s director for international affairs Mohsen Qamsari spoke of the reasons behind the decision made by Tehran to replace the gasoline produced by petrochemical plants with imported ones. The following is the transcript of the interview:

Shana-I don’t know why, but some media believe that the gasoline produced by petrochemical plants has no problem and at the same time they argue those who prefer gasoline importation seek their own benefits; could you tell us more about these augments. Also tell us how much gasoline has been imported as of the beginning of this Iranian calendar year on 21st March?

Qamsari: The National Iranian Oil Products Distribution Company (NIOPDC) called for the import of 10 million liters per day over the first two months of the year, but actually daily gasoline imports hit 6 million liters.

Shana-Please tell us about the quality of the gasoline the country imports. How much are they close to standards?

Qamsari: When compared with the gasoline produced in petrochemical plants, imported gasoline has less aromatic and cyclic compounds, the content of its sulfur stands at 150 ppm and the content of its benzene is less than 2 percent. Similarly, it’s a high octane gasoline, 95 to 98 octanes, above the normal standards which is 92 to 95. Besides NIOPDC has developed some criteria for the gasoline used in the country which authorize 50 ppm and the content of its benzene just one percent. Considering these specifications, the country imports a kind of gasoline enjoying higher standards than those produced by petrochemical plants.

​Shana-How well is the gasoline produced by petrochemical plants?

Qamsari: When an industrial structure has not been built for producing a specific product, normally it can neither produce a qualified output nor can it guarantee its quality. The same is true about petrochemical plants. Petrochemical plants have been built not to produce gasoline. So when they decide to do so cyclical components' residue remains in the product to a great extent which is dangerous. You can’t find anywhere in the world that petrochemical plants are involved in producing gasoline.

Let me add another point. Air pollution in populated cities of the country was not solely due to distribution of the gasoline produced by petrochemical plants. Substandard and old vehicles with flows in combustion were also partly responsible for air pollution.  

Such vehicles with any kind of gasoline could cause pollution so we could also blame the car industry for the problem. Furthermore, the great number of vehicles in the cities makes air pollution inevitable. Generally, a variety of elements are responsible for the problem, even though we cannot ignore the role petrochemical plants in air pollution by producing substandard gasoline.

 

Shana-Anyway, slapping sanctions against the country made gasoline production at home necessary. Do you think if the country is faced with a similar situation in the future, it will turn to petrochemical plants for producing gasoline?

I am not to deny the possibility that we may face similar situations in the future. In that case, we may do what we did in the past. But even if similar circumstances arise we prefer to monitor the process of gasoline production and consumption and will not allow substandard gasoline to be used.

Shana-Despite the quality you mentioned, why some petrochemical plants insist on the good quality of the gasoline they produce?

Qamsari: I think it is normal, because some petrochemical plants which are engaged in producing gasoline are private sector companies and it is natural that they defend the kind of gasoline they produce.

Shana-Apart from sanctions, do you believe in self-sufficiency in gasoline production?

Qamsari: Of course, gasoline is a strategic commodity and self-sufficiency in this regard is crucial. But these days self-sufficiency has a different meaning and serves different goals when compared with several decades ago. While producing a product at home is very expensive and at the same time, we can import it with very lower prices, in this case self-sufficiency is not the best option, because it is not economically justifiable. I want to stress once again that we consider self-sufficiency in gasoline crucial. Let me announce that fortunately we are not much dependent on gasoline imports.

Shana-How much is the country dependent on imports?

Qamsari: While daily gasoline consumption stands at 70 million liters, gasoline imports hit 10 million liters per day at most during the period. Last year the country imported about 4 million liters of gasoline per day so we are not much dependent on imports. Besides, three oil refineries are under construction. When these refineries come online, self-sufficiency in production of high qualified gasoline is not far from reach.

Shana-From which countries do we import gasoline?

Qamsari: Asia is the main provider. NIOPDC announces the specifications of the gasoline it plans to import and we convey their call to the related trade companies. Due to sanctions, we cannot buy gasoline directly because we are facing problems in view of transferring money.

Shana-Why don’t you hold a tender?

Qamsari: While sanctions are still in place, we cannot meet our gasoline needs through bidding. Furthermore, you usually hold a tender when supply potentials go beyond demand. Prior to imposing sanctions, there were many companies selling gasoline to Iran but they halted the trade afterwards. Here I would like to announce clearly that if any company is ready to meet our needs to euro-4 gasoline based on competitive prices we are ready to enter into talks. 

News ID 219101

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