Oil Industry Efficiency Drops Amid Currency Mismanagement

Currently, about 230 million tons of vegetable oil are produced in the world, and this figure increases by 3 to 5 percent annually due to population growth.

In the first six months of the year, 1,121,000 tons of oil were distributed in the country; while the country’s annual consumption based on population is about 1,700,000 tons.

Unfortunately, this situation is evidence that oil is being smuggled out of the country due to the difference in exchange rates.

The amount of oil consumed in the country, considering the population and per capita consumption, is 1.75 million tons, but this year our distribution will reach 2.3 million tons, which indicates that oil is being exported from the country either in the form of reverse smuggling or in the form of sweets, chocolate, snacks, etc.

Currently, an 810-gram bottle of oil costs Rls. 692,500, and with its full liberalization, it is estimated to be about Rls. 1,300,000, and it can be provided to each subsidy recipient in the form of a voucher from the previously mentioned foreign exchange savings account. Also, if the above amount is charged to their card a month earlier, it will prevent market inflammation and social sensitivities.