Shell, Total set preconditions for activity in Iran

News ID: 3737541 -
TEHRAN, Aug. 10 (MNA) – An official said Shell and Total oil companies have set receiving of 20 to 25 percent of fuel sale commission as a precondition for constructing new filling stations in Iran.

Head of Iran's CNG Association Ardeshir Dadras, while pointing to held negotiations with a number of world’s leading oil firms over construction and implementation of filling stations inside the country, said “the talks have been conducted between Iranian private sector investors and foreign oil companies.”

The official underlined that giant oil firms like Royal Dutch Shell and France’s Total have defined two preconditions before embarking on the project.

“On requirement posed by foreign firms has been to launch floating prices for various energy carriers like petrol, diesel, LPG and CNG,” underscored Dadras outlining the second proviso as receiving a total of 20 to 25 percent of commission for sales per unit of each fuel type.

He reiterated that world’s oil companies have called for receiving up to 25% commission for selling each cubic meter of CNG or LPG stating “however, the commission rate for gasoline and diesel has been set at about 10 to 12 percent by the European parties.”

“Given the current energy prices and fees, Iranian oil companies cannot afford to cooperate in construction or implementation of fuel stations,” recalled Ardeshir Dadras adding “commission rates have remained at a low constant level over the past two years leaving foreign and domestic companies with no desire or incentive to construct new fuel stations in Iran.”

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