Eliminating Oil Subsidy FX and Market Transparency

The foreign exchange allocated for crude oil imports is estimated to be around two billion euros annually. Transferring this commodity to the “Second Currency Hall” could save the government around 167 billion euros. As a result, by eliminating hidden foreign exchange subsidies, the government will be able to manage and allocate foreign exchange resources in a targeted, transparent and efficiency-based manner.

Considering Iran’s 85 million population and about 5 million immigrants, a total of 90 million people, and a per capita consumption of 18 kilograms of oil per year, the country’s annual consumption is estimated to be around 1,650,000 to 1,700,000 tons. This is while the production and distribution of oil in the first eight months of 1404 (April-November 2025) was around 1,500,000 tons. The difference between these two numbers indicates that around 400,000 tons of oil is directly and indirectly reverse-smuggled and exported from the country.