Iran Gov’t expects to make $5.5 billion from gasoline export

Financial Tribune – The latest rationing and doubling of gasoline prices that started out of the blue last Friday (Nov. 15) will annually generate up to $5.5 billion in export revenue for the government, a board member of the Iranian Oil, Gas and Petrochemical Products Exporters’ Association said.

“The National Iranian Oil Products Distribution Company’s output stands at 115 million liters per day, of which 95 ml/d is used domestically and the rest (20 ml/d) can be exported,” Hamid Hosseini was quoted as saying.

Given the controversial rationing scheme and higher pump prices, current gas consumption is expected to decline to 85 ml/d in less than 90 days, consequently creating extra space for exports (possibly 30 million liters/day).

Hosseini opined that one liter of the fuel can be sold at 50 cents to neighboring states, earning an estimated $5.5 billion a year, or equivalent of the amount made from selling 300,000 barrels of crude per day at $50.