AFP reported that Iran has signed a deal with Afghanistan to supply its neighbor with a million tonnes of fuel oil, petrol and aviation fuel a year.

As per report, the accord was signed by the Afghan trade and industry minister Mr Anwar Ul Haq Ahady and Iran's deputy oil minister Mr Alireza Zeyghami.

According to Mr Zeyghami, two thirds of the export deal was for fuel oil, a category that includes diesel and fuel for agricultural, industrial and heating uses. He said that a quarter was for petrol and around 10% was jet fuel.

The agreement was announced as Iran is subject to Western sanctions against its oil and gas sectors over Tehran's controversial nuclear program. The United States and Europe are poised to increase sanctions in coming weeks.

Iran's oil ministry in February 2011 said that it hoped Afghanistan would buy all its needed fuel products from Iran.

But the Afghan government responded by saying it could not afford to do so and would continue to also buy from central Asia and Pakistan.

About one third of Afghanistan's fuel needs, imported from Russia, Turkmenistan and Iraq, transit through Iran.

(Sourced from Agence France Presse)