Iran supplies some 270 million liters of fuel to airlines

Business Materials 25 May 2015 16:43 (UTC +04:00)

Baku, Azerbaijan, May 25

By Umid Niayesh - Trend:

Iran has supplied about 270.5 million liters of fuel to domestic and foreign airlines during the first two months of the current fiscal year (March 21-May 22), Ali Harandi, head of the Head Office for Fueling Airlines, affiliated to National Oil Products Distribution Company said.

The figure indicates an increase by 6.72 million liters compared to the same period of preceding year, Harandi said.

The official said that over 142.64 million liters of fuel were supplied to 17,800 fights during the first Iranian calendar month (March 21-April 22), the oil ministry's official SHANA news agency reported May 25.

The figure is 6.2 million liters more year on year, Harandi said, adding the increase in travel during the Iranian New Year holidays (March 18-April 4) was the main reason behind the sharp rise.

Some 127.87 million liters of fuel were also supplied to 17,624 flights in the second Iranian calendar month (April 22-May 22), 458,500 liters more year on year.

Iran supplied about 1.526 billion liters of fuel to domestic and foreign airlines during the last fiscal year (ended on March 20), indicating a rise by 8 percent compared to the preceding year.

About 203,850 flights were supplied with fuel during the last fiscal year, with domestic flights sharing 80 percent of the mentioned figure.

Oil ministry officials say Iranian airlines owe some $290 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.

Edited by CN

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