Iran boosted gasoline exports in March-July amid growing extra supply at home due to weak demand under the country’s coronavirus-containment measures. An industry survey showed Iran exported 172,000 bpd of gasoline in June, the highest so far this year. Gasoline exports in July increased from just 30,000 bpd in January and February despite US sanctions. Iraq and Pakistan were Iran’s primary gasoline export markets during the period.
Domestic gasoline consumption fell from 475,000 bpd in December to 313,000 bpd in April after Tehran prohibited domestic travel and enforced social distancing measures across the country. Earlier this month, Nasser Raisi-fard, the chairman of the state-backed Association of Petroleum Product Distribution Chain Companies, said gasoline consumption had improved to 410,000-440,000 bpd. Market analysts expect Iran’s gasoline demand to average 472,000 bpd for the whole of 2020.
Iran increased its gasoline production capacity to around 692,000 bpd, mostly thanks to the four-phase 480,000 bpd Persian Gulf Star condensate splitter project at Bandar Abbas. Iran started becoming a net gasoline exporter in February 2019, after starting up the third phase of the 120,000 bpd PGS project. The project is scheduled to complete the fourth phase next month.
