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Diesel smuggled from Iran cover 35% of Pakistan’s demand: Report

A report shows up to 35% of diesel sold in Pakistan is arriving illegally from Iran.

Pakistan is increasingly relying on diesel fuel smuggled from Iran as a report shows that up to 35% of diesel sold in the South Asian country is arriving illegally from its western neighbor.

The Pakistan Petroleum Dealers Association told Reuters on Tuesday that there has been a major surge in the smuggling of Iranian fuel to Pakistan in recent months.

The report said that fuel smuggled from Iran is currently being used in many areas in Pakistan unlike in the past when smuggling was limited to the Pakistani border province of Balochistan.

It also cited figures from Pakistan's energy ministry showing that diesel sales in the country had slumped more than 40% due to the increased presence of smuggled products in the market.

The report comes against the backdrop of statements by Iranian Oil Ministry authorities suggesting that fuel smuggling from the country has reached record levels mainly due to a significant difference between fuel prices in Iran and those charged in neighboring states.

A report by Fars news agency in late April showed that Iran is losing some $4 billion per year to fuel smuggling.

Figures cited in the report showed that some five million liters per day of gasoline distributed to motorists in Iran end up in the hands of fuel smugglers operating at southeastern and southern borders of the country.  

The figures showed that some 10 million liters per day of diesel is also being smuggled out of Iran amid lax controls in some Iranian power plants where diesel is burned to produce electricity.

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