Iran inks oil products deal with Afghanistan

Published: December 27, 2011
Iran agrees to export one million tons per year of gasoil, gasoline and jet fuel to the neighbouring country.

Iran agrees to export one million tons per year of gasoil, gasoline and jet fuel to the neighbouring country.

TEHRAN: Iran signed an agreement with Afghanistan on Monday to export one million tons per year of gasoil, gasoline and jet fuel to the neighbouring country starting next year, the official Irna news agency reported. 

The Islamic state, which was long dependent on imported gasoline for 30 to 40 percent of its consumption, said last year it had started exporting the fuel. The sales were confirmed to Reuters by trade sources, but they did not know at the time where the cargoes were being exported.

“Iran has exported gasoil to Afghanistan over the past years but the export of gasoline and jet fuel will begin next year,” Irna quoted Ali Reza Zeighami, managing director of the National Iranian Refining and Oil Products Distribution Company, as saying.

Zeighami said the price of the products will be determined based on International prices.

In April, trade sources said Iran had struck a deal to sell gasoline to Iraq but that the rare cargo did not mean the Islamic Republic had became a net exporter and free from its dependence on gasoline imports.

Shipping data obtained by Reuters in November showed Iran’s October gasoline imports rose more than 21 percent to 63,279 barrels per day from 51,986 bpd in September.

President Mahmoud Ahmadinejad said on Wednesday his country would become a major gasoline exporter by 2013, despite the West’s toughest-ever sanctions on the Islamic state.

The sanctions have targeted a vulnerability caused by Iran’s lack of refining capacity, and many foreign companies have been forced to withdraw from Iran’s energy sector.

The United States, Britain and Canada announced new measures against Iran’s energy and financial sectors last month and the European Union is considering a ban, already in place in the United States, on imports of Iranian oil.

The sanctions follow a report by the U.N. nuclear watchdog in November linking Tehran to the development of a nuclear weapon. Iran denies this, insisting its nuclear programme is aimed at generating electricity.

Iran, the world’s fifth-largest oil producer, has estimated its reserves at 150 billion barrels of oil and 33 trillion cubic meters of gas.

Facebook Conversations

Reader Comments (6)

  • Falcon
    Dec 27, 2011 - 1:51PM

    For the life of me, I can’t figure out the intended benefits of sanctions on any country; they might help powerful countries of the world display their political muscle, but engender deep seated grievances against these countries, specially when the victims of these sanctions are not the actual decision makers of the targeted state, but the poor and helpless masses.


  • Ali
    Dec 27, 2011 - 2:01PM

    where is IPI gas pipeline ?????????????????????????/


  • Farhan
    Dec 27, 2011 - 3:31PM

    What is interesting to note that present Afghanistan (one of the poorest coutries of world) is under US control, despite this they are getting this deal with Iran.

    If we compare this situation with Pakistan, we will find out a picture of helplessness as a nuclear armed country (Pakistan) is not able to resist US pressure to import gas from Iran. Isnt it strange?


  • Ali Tanoli
    Dec 28, 2011 - 12:22AM

    There is not much diffrence bet iran and america in the way of clever and foxy lady.


  • realist
    Dec 28, 2011 - 1:00AM

    You forget the Indian influence. They are close buddies with Iran too.


  • It's (still) the economy, stupid
    Dec 28, 2011 - 5:49AM

    What it means is that NATO will get its petroleum supply from Iran instead of Karachi Port in Pakistan. This supply will be subject to embargo but the embargo will not be enforced. This deal is designed to let Pakistan know that there are out of box solutions. So don’t think that Afghanistan and NATO can not live without Pakistan. Watch very soon Iran and Afghanistan will sign a free trade deal and expand the use of Chabbar port and use Karachi port to minimum to nil. It also means that checks from Uncle Sam will not be coming to Rawalpindi.


More in World