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Iran to start sealing Turkish transit trucks’ fuel tanks in two weeks

Business Materials 17 November 2014 14:16 (UTC +04:00)

Baku, Azerbaijan, Nov. 17

By Umid Niayesh - Trend:

Iran will start sealing fuel tanks of Turkish trucks coming into Iran on the border checkpoints in next 15 days, the Islamic Republic's Deputy Roads and Urban Development Minister Davoud Keshavarzian said.

Keshavarzian, who heads Iran's Road Maintenance and Road Transportation Organization, said that Iran will stop supplying Turkish trucks with its cheap fuel, the Islamic Republic's Fars news agency reported Nov. 17.

Keshavarzian underlined that the sealing fuel tanks will not include other countries' trucks.

The decision was made to solve the dispute between the two countries on the transit fees, since fuel prices in Iran are much cheaper than in Turkey.

Iran and Turkey are at odds over trucks' transit fees. Over the past years, Iran has been charging a $750 transit fee for the trucks entering the country from Turkey, while the Iranian trucks were entering Turkey for free.

Following that Turkey imposed a similar fee on Iranian trucks. But the Islamic Republic increased the fee to $1,500 on October 10.

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.

Keshavarzian called the Iran's decision "logical" adding the Turkish side would be the looser side of the dispute.

The Turkish side will lose more on the issue and actually the decision would lead to an increase in the prices of Turkish goods in Iran, he added.

It also will impose negative effects on the growth of Turkey's trade, Keshavarzian said, adding the Turkish side would try to fix their mistake in the future.

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 26,700 IRR).

Turkish Transport, Maritime and Communication Minister Lutfi Elvan said on October 20 the twofold increase in transit fees for Turkish trucks entering Iran is illegal.

The minister said Turkey respects all agreements with Iran, adding that Tehran's response should be similar.

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