Iran denies Shell and Total will open 200 gas stations

The National Iranian Oil Products Distribution Company (NIOPDC) has crushed reports of Shell and Total entering Iran's fuel retailing market by stating such retailing requests have not been received.

Only two weeks ago, Bijan Haj Mohammad Reza, the chairman of Iran´s fuel retailers’ trade union, said 200 Shell and Total gas stations had been approved by Iranian officials, signifying the first time foreign-branded stations would be allowed on Iranian soil.

“So far, no request has been made by Total and Shell to build gas stations and no negotiation has taken place,” told NIOPDC Managing Director Nasser Sajjadi to IRNA news agency.

Another spokesman from NIOPDC, Davoud Arab-Ali, explained companies need to get a license from the government agency in order to enter the gas station market – Total and Shell have not made any official request for such permits.

“If there is a request for building gas stations, it will be raised in NIOPDC’s board of directors and in case there is no legal restriction, it will be accepted,” IRNA quoted Arab-Ali.

The general feeling is still leaning towards an opening of the Iranian fuel retailing market, with Arab-Ali admitting some energy companies might have held negotiations and come to agreements with foreign companies.

Iran has some of the world´s cheapest fuel, but is currently in need of a modernization and expansion of its gas station network. According to figures from Iranian media, there are some 3,232 gas stations servicing a country of almost 80 million people.