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Iran supplies over 1.5 billion liters of fuel to airlines in one year

Business Materials 6 April 2015 17:15 (UTC +04:00)

Baku, Azerbaijan, Apr. 6

By Umid Niayesh - Trend:

Iran has supplied about 1.526 billion liters of fuel to domestic and foreign airlines during the last fiscal year (ended on March 20), Ali Harandi, head of the Head Office for Fueling Airlines, affiliated to National Oil Products Distribution Company said.

The figure indicates an increase by eight percent compared to the preceding year, Harandi said.

The official further said that the company has supplied about 203,850 flights with fuel during the last fiscal year, the oil ministry's official SHANA news agency reported April 6.

Harandi said that over 56 million liters of fuel were supplied to 10,867 flights during the new Iranian year holidays (March 18-April 4).

Domestic flights share 80 percent of the mentioned figure, he added.

The volume of the fuel which supplied to airlines in the holidays indicates an increase by six percent year on year, meanwhile the flights' number increased by 4.2 percent.

Oil ministry officials say Iranian airlines owe some $289 million to the National Iranian Oil Refining and Distribution Company (NIORDC).

After launching the Subsidy Reform Plan, the administration sharply increased the jet fuel price for domestic passenger airlines.

The subsidy reform plan, launched in December 2010, allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years.

Earlier the head of the association of Iranian airlines, Abdolreza Mousavi said that Iranian airlines are unable to pay off their fuel debts to the Oil Ministry due to their bad financial situation.

Many of the national fleet planes have been grounded due to financial problems, he said, adding that spare parts and components are purchased from second-hand sources due to international sanctions with great difficulty.

Follow the author on Twitter: @UmidNiayesh

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