MNA reported that Iran and Afghanistan signed a memorandum of understanding for exporting oil products from Tehran to Kabul.

Mr Alireza Zeighami MD of National Iranian Oil Refining and Distribution Company and Mr Anwar Ul Haq Ahady Afghanistan’s Minister of Commerce and Industries signed the MOU.

Based on the agreement, Iran will export 300,000 tonnes of oil products to the neighboring country in 6 months. Gas oil will account for 70% of the exports while gasoline and jet fuel will account for 20% and 10% respectively.

Iraq, Afghanistan and Armenia were importers of Iranian gasoline since the country began to export domestically produced fuel, Iran’s Customs Administration reported in October 2010.

Mr Abbas Memarnejad Iranian oil official and head of the customs said that Iran began export of gasoline to overseas market since gaining self sufficiency in the production of this strategic commodity. 6,000 tonnes of gasoline was exported in April to other countries totaling over USD 5 million in export revenue.

The news comes soon after Iran decided to launch a crash program for boosting its domestic gasoline productions by upgrading the existing refineries that have led to increase in gasoline productions. Iran plans to boost domestic output from the current 42 million liters to 186 million liters per day within 5 year timeframe. This year alone there was an increased output of over 22 million liters.

Iran is implementing major oil and gas swaps with neighboring countries including Turkmenistan, Armenia, Afghanistan and Iraq. Some 400,000 to 500,000 of diesel fuel was exported to Iraq last and the volume is expected to reach one million liters this year.

(Sourced from Mehr News Agency)