Fuel smuggling in Iran is a severe economic crisis, with 20-30 million liters smuggled daily, generating over $30 billion in annual losses. This systemic issue involves a sophisticated network that benefits powerful regime figures. Despite officials’ acknowledgment including President Pezeshkian, efforts to combat this corruption have proven ineffective, spotlighting the depth of systemic corruption affecting the Iranian economy.
Fuel smuggling represents a critical economic challenge in Iran, with estimates indicating that 20 to 30 million liters are illicitly taken each day. This issue is part of a well-coordinated network, not merely the actions of petty criminals. The proceeds from fuel smuggling largely benefit influential entities and individuals within the Iranian regime.
During a parliamentary session concerning an impeachment case, the Iranian Minister of Economic Affairs and Finance disclosed that fuel smuggling constitutes an annual loss of over $30 billion. He pointed out that approximately 20 million liters of diesel are smuggled daily, translating to a staggering 320 trillion tomans yearly, which could potentially provide every citizen with four million tomans if redirected. This reality underscores the magnitude of the crisis facing the nation.
President Masoud Pezeshkian and Chief Justice Gholam-Hossein Mohseni-Eje’i have both recognized the severity of the situation, stating that smugglers can sell subsidized diesel at exorbitant black market prices, far exceeding the government’s set rates. Estimates reveal that diesel smuggling alone generates over 500 trillion tomans in illicit gains annually. Despite official recognition, efforts to curtail this rampant smuggling have had minimal impact over the years.
Mahamoud Khaghani, an expert on energy and former director general of the Ministry of Oil, has illustrated how deeply the smuggling network is embedded in the regime’s power structure. Citing former President Hassan Rouhani from 2017, who noted only a select few control the country’s liquidity and obstruct economic reform, Khaghani emphasizes the significant challenges in combating corruption. When attempts for budget transparency were made, they faced intense opposition from those profiting from this illicit wealth.
A comparison can be drawn between Iran’s fuel smuggling operation and Mexico’s oil mafia, with Khaghani emphasizing the sophistication of Iran’s oil mafia. This organization operates within a complex network, effectively preventing small groups from executing large-scale fuel smuggling. Even Bijan Zanganeh, the previous Oil Minister, has admitted to the mafia’s deep-rooted influence in the oil sector, complicating efforts to mitigate corruption.
Concern arises about how the Iranian Refining and Distribution Company appears unaware of the unauthorized pipelines facilitating this trade and which high-ranking officials may be complicit in such operations. These questions signal a concerning level of corruption among influential figures in the regime.
Khaghani posits that confronting this entrenched oil mafia is increasingly unattainable, which limits President Pezeshkian’s ability to address the economic control exerted by a concealed government entity. Corruption remains deeply woven into Iran’s political and economic fabric, indicating that until the regime’s reliance on illicit financial channels ceases, meaningful reform will remain elusive, leaving the Iranian populace to grapple with the fallout of continual economic mismanagement.
In summary, Iran’s fuel smuggling crisis is a significant economic dilemma that not only drains resources but also safeguards a corrupt power structure. The regime’s acknowledgment of the scale of the problem underscores its deep entwinement with organized networks resisting change. The inability or unwillingness to dismantle these networks elucidates a systemic issue of corruption and highlights the barriers to meaningful reform within the economy, further impacting the Iranian populace.
Original Source: irannewsupdate.com
