Iran's Fuel Smuggling Crisis: How $1.23 Per Liter Profit Fuels an Illegal Trade

Iran's naval forces have intensified efforts to combat fuel smuggling operations in the Persian Gulf, a region crucial for the country's economy. Despite being rich in energy resources, Iran faces significant challenges due to the illegal export of diesel, gasoline, and kerosene. The volume of fuel smuggled ranges from 10 to 20 million liters daily, with a large portion flowing into neighboring countries like Pakistan, where up to 35% of diesel is illegally sourced from Iran. As sanctions continue to impact the Iranian economy, the Revolutionary Guards Navy has ramped up monitoring and enforcement actions against smugglers. Experts indicate that the crisis is exacerbated by a combination of low fuel production costs, significant government subsidies, and the depreciation of the national currency, creating a lucrative environment for smuggling operations.