Iran’s largest gasoline supplier has ramped up output by 15% this year compared to levels seen in 2022 amid a rising demand for fuel in Iran that has been exacerbated by smuggling activity across the borders.
CEO of Persian Gulf Star Oil Refinery (PGSOR) said on Thursday that gasoline output of the refinery had reached 41 million liters per day, up from a daily production of 35.6 million liters reported last year.
Alireza Jafarpour said that the PGSOR supplies another 4 million liters per day of gasoline derivatives to other refineries to help them increase their output.
“Directly and indirectly, we are responding to 45 million liters of the gasoline demand in the country,” said Jafarpour.
The PGSOR is the largest refinery in the world that runs on condensate, which is a very light form of crude oil. It is located near the port city of Bandar Abbas in southern Iran on the Persian Gulf coast.
The refinery has played a major role in Iran’s self-sufficiency in gasoline production since it was officially opened in 2019, more than a year after Iran’s petroleum industry came under American sanctions.
The major increase in gasoline output in the PGSOR, which itself was blacklisted by Washington in July last year, comes despite the fact it is banned from accessing foreign investment and technology.
Iran’s current average demand for gasoline is more than 120 million liters per day while consumption reaches nearly 150 million liters on peak travel days.
Experts say ultracheap prices of gasoline and diesel fuel in Iran have encouraged smuggling activity across the borders, leading to a steady rise in domestic demand in recent years.