Gasoline Offer in Iran Energy Exchange

EghtesadOnline: National Iranian Oil Refining and Distribution Company plans its first round of gasoline offer on the export ring of Iran Energy Exchange on Wednesday, the IRENEX chief said.

News ID: ۷۴۸۰۳۰

30 July 2019

Ali Hosseini said Iran’s gasoline will be on offer for Afghan buyers in the initial phase, adding that the initiative can later be extended to other neighbors.

As planned, IRENEX will offer a cargo of 10,000 tons gasoline this week and it will be loaded from the Persian Gulf Star Refinery, Financial Tribune reported.

“The same volume will be offered on a weekly basis and we plan to increase it if the initiative is successful,” IRIB News Agency quoted Hosseini as saying.

As for payments, he pointed to two methods of settlement, namely payment via Central Securities Depository of Iran and direct payment to the seller outside of the capital market clearing house.

Payment can be cleared either in rials or in foreign currency subject to the seller’s request, he said.

Buyers can potentially be domestic and foreign traders as well as commercial companies, he said, adding that Afghan traders are active in this arena.

Asked whether the initiative will affect domestic gasoline prices, the IRENEX chief said that those prices are the function of NIORDC. He did not elaborate.

Buyers should first receive trading codes to be eligible to trade in IRENEX. They can also place orders via authorized brokerage companies.

Hosseini ensured buyers that their identity will remain confidential, emphasizing that there are legal restrictions with regard to the identity of traders in the capital market.

Oil officials say Iran’s gasoline production has surpassed domestic production and the nation has reached self-reliance in producing this strategic fuel.

For almost four decades Iran was a fuel importer, especially gasoline, because local refiners could not meet growing demand.

As per existing reports, often carried by the Tribune, average daily domestic gasoline consumption is near 92 million liters.