23 Nov 2024
Wednesday 10 August 2016 - 16:35
Story Code : 226531

Shell, Total set preconditions for activity in Iran

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 worlds 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 Shelland Frances 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 worlds oil companies have called for receivingup 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.

By Mehr News Agency
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