Dimensions of the fuel smuggling crisis in Iran

According to Energy Press, diesel smuggling has become one of Iran’s biggest economic, security and social crises. The problem, which is particularly prevalent in the country’s border areas, not only damages the country’s financial resources but also has significant negative impacts on border security, the environment and public welfare.
Causes and Reasons for Diesel Smuggling
One of the main reasons for diesel smuggling in Iran is the significant price difference between the fuel inside the country and neighboring countries. According to reports, a liter of diesel in Iran costs about 5,000 rials (approximately 12 cents), while in neighboring countries such as Afghanistan, Pakistan and Iraq, the price can reach more than 50,000 rials (approximately $1.2). This price difference has made it easy for fuel smugglers to make huge profits by selling diesel abroad.
Mehdi Zandi, former director general of the Ministry of Interior’s Department of Combating Smuggling of Goods and Currency, told reporters: “The difference in fuel prices in Iran and neighboring countries has created many incentives for smugglers. In some border areas of the country, we witness the smuggling of more than 30 million liters of diesel to neighboring countries daily.”
Economic and financial dimensions of diesel smuggling
In addition to economic losses for the country, diesel smuggling also affects energy resources and national production. According to official statistics, more than $3 billion of the country’s oil revenues are lost annually due to fuel smuggling. This smuggling, which is mostly carried out in the provinces of Sistan and Baluchestan, Hormozgan, Khuzestan, and Bushehr, has dealt a heavy blow to the country’s economy.
Nasser Goodarzi, an economic expert in this field, says: “Fuel smuggling, in addition to economic losses, also causes dissatisfaction among the people and domestic industries. This situation causes fuel shortages in some areas of the country and disrupts transportation and agricultural production.”
According to official and media reports, diesel smuggling remained a major economic problem in Iran in 1402 (2023-2024). Accurate and official statistics on the volume of diesel smuggling in this year have not been fully published, but based on available information, fuel smuggling continued in Iran’s border areas, especially in the provinces of Sistan and Baluchestan, Khuzestan, and Hormozgan.
According to reports from officials and experts, diesel smuggling in 1402:
Around 30 million liters of diesel were smuggled out of Iran daily.
This smuggling mainly went to neighboring countries such as Afghanistan, Pakistan, and Iraq.
It is estimated that the volume of fuel smuggling in Iran in 1402 will reach more than $3 billion, which includes diesel and other fuels.
This volume of smuggling has not only harmed the country’s economy, but has also affected the supply of fuel in some internal regions of the country. The Iranian government made efforts to combat fuel smuggling this year, including strengthening oversight, using new technologies, and cracking down on smuggling networks, but these efforts continued to face challenges.
Environmental and Social Impacts
Diesel smuggling not only affects the country’s economy but also causes many environmental and social problems. Smuggling fuel is often used illegally in neighboring countries, which can lead to further air pollution and a threat to natural resources. It has also exacerbated social and livelihood problems within the country’s borders.