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Turkey, Iran lose $3.5M due to transit trucks stuck on joint border

Business Materials 21 October 2014 16:32 (UTC +04:00)

Baku, Azerbaijan, Oct. 21

By Umid Niayesh - Trend:

A senior member of Iran's Chamber of Commerce, Industries, Mines and Agriculture Masoud Daneshmand said that 2000 Turkish trucks as well as 1500 Iranian trucks are stuck on the joint border, because of increased transit fees.

Daneshmand, who heads the Transport and Customs Commission of Tehran Chamber said that the 10-day delay has already imposed $3.5 million of losses for the sides, ISNA news agency reported Oct. 21.

Turkey has recently decided to charge $750 worth of border crossing fees for Iranian trucks in order to force Iran to reduce its $750 fee on Turkish trucks. Iran was originally charging the transit trucks because of a big difference in fuel price.

After Turkey raised the prices for Iranian trucks, the Islamic Republic in turn raised its price to $1500. The move was countered by Turkey, which also raised the price to the same level of $1500.

Both sides accuse the counterpart's move as illegal.

The Iranian officials said that under an agreement signed with Turkey a few decades ago, the two sides may charge a transit fee only if there is a difference in fuel prices in the two countries.

The price of 1 liter of diesel fuel in Turkey is 2.12 TRY (the rate of $1 is equal to 2.2729 TRY). In Iran, 1 liter of diesel fuel costs 2,500 IRR (the rate of $1 is equal to 26,692 IRR).

Meanwhile, Iran's Economy Minister Ali Tayyebnia said that the country's minister of Roads and Urban Development, Abbas Akhoundi will handle the issue from Iran's side.

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