Iran sells 116mn litres of jet fuel to world firms

Iran produced a total of 1.4bn litres of jet fuel last year

Iran is selling jet fuel at 10c a litre cheaper than its regional competitors in order to attract new business.
Iran is selling jet fuel at 10c a litre cheaper than its regional competitors in order to attract new business.

Figures released this week show that Iran has exported a total of 116mn litres of jet fuel to foreign aviation firms.

Mohammad Reza Mazloumi, an official with the National Iranian Oil Products Distribution Company, said 1.4 billion litres of fuel were delivered to Iranian and foreign airlines over the past year, Iran's Shana news agency reported on August 31.

In the first five months of the current year, 677 million litres of fuel were delivered to Iranian and foreign airlines, he added.

The current Iranian year began on March 21.

Ali-Mohammad Nourian, the Iranian deputy transport minister, said in October 2013 that Iran plans to supply fuel to foreign airlines at 10 cents [per litre] cheaper than the regional countries in a bid to attract more international flights.

He added that jet fuel is ordinarily supplied at 9 cents higher than the Persian Gulf FOB rate.

"We supply foreign airlines with fuel 10 cents below the average price, which is supplied by regional countries, in a bid to attract more international flights," he explained.

Currently four of Iran's nine refining companies produce jet fuel, the largest of which is the Shahid Tondgoyan refinery in Tehran, which is capable of producing approximately 1.7 million litres per day of jet fuel, according to the NIOPDC website.

Iran has boosted its refining capacity of both jet fuel and gasoline in recent years following increased Western sanctions over concerns about Iran's nuclear program, which adversely affected Iranian energy exports.

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