Mohammad-Sadeq Azimifar noted that the 14th administration has implemented dual measures in both prevention and confrontation to reduce fuel smuggling.

The official, speaking on Sunday during a visit to the Tehran Refinery, highlighted that since the 14th administration took office seven months ago, significant efforts have been made to increase gasoline production and improve its quality. He reported that during this period, gasoline production at the country’s refineries has increased by an average of 8 million liters per day, rising from a stable daily average of 97 million liters to 105 million liters in the second half of the year. This increase has significantly boosted the country’s gasoline reserves.

Azimifar explained that process improvements at refineries, such as the Tehran Refinery and the Persian Gulf Star Refinery, utilizing idle gasoline production capacities, have contributed to this production increase. He added that these processes have not only enhanced the quantity of gasoline but also improved its quality.

The CEO emphasized that the 14th administration has taken a dual approach to combat fuel smuggling, focusing on both prevention and confrontation. In the confrontation domain, security, law enforcement, and judicial agencies have made notable discoveries. On the prevention side, the Ministry of Petroleum has signed a contract for real-time monitoring of all facilities to ensure precise oversight from production to final consumption.

Azimifar stressed that the primary root of smuggling lies in the consumption sector, particularly the diversion of subsidized fuel by unauthorized users in transportation, agriculture, and industry. He noted that the National Iranian Oil Refining and Distribution Company has used data science and analysis to monitor fuel consumption in the transportation fleet over the past nine months, employing roadside cameras and waybill systems. Significant discrepancies in fuel consumption were identified, underscoring the need for stricter oversight of consumers.

Efforts to revive CNG infrastructure

Azimifar reported that CNG consumption has decreased from 24 million cubic meters per day in 2020 to about 19 million cubic meters per day at the start of the current administration. This decline has added approximately 5 million liters to gasoline consumption.

He attributed the drop in CNG use to neglect of the CNG sector in recent years. As a result, the 14th administration is working to rebuild and revive CNG infrastructure through initiatives such as issuing savings bonds and converting public vehicles to CNG for free.

The CEO highlighted that diversifying the fuel portfolio by enhancing CNG infrastructure is a key priority for the government, as it plays a crucial role in reducing gasoline imbalances. He added that issues related to CNG station fees are under review, and the government hopes to resolve them fully.

Azimifar also mentioned that the 14th administration is collaborating with the Ministry of Economy to deregulate and remove barriers to private sector imports of super gasoline. Efforts are underway to streamline the licensing process through the national licensing portal. Multiple meetings with representatives from the Ministry of Economy, the Chamber of Commerce, and the private sector are being held to address remaining obstacles.

He noted that one proposed solution for price discovery of petroleum products is the use of the energy exchange. This idea has been well-received by major importers and interested brands, and details for its implementation are currently being finalized.