Aug 24, 2021: An Iranian official said that Iran had resumed fuel exports to Afghanistan a few days ago at the request of the new Afghan government, which now feels empowered after the US withdrawal to buy oil from the otherwise sanctioned nation.

The Afghan government is now in the hands of the Taliban, a Sunni Muslim group that seized power in Afghanistan last week when the United States and its allies withdrew their troops after a 20-year war.

Petrol prices in Afghanistan reached $900 a tonne as many Afghans were driven out of cities for fear of reprisals and a return to strict interpretation of Islamic law imposed by the Taliban 20 years ago.

To counter rising prices, the new Taliban called on Shiite Iran to keep its borders open for traders. Hamid Hussein, a board member and spokesman for Iran’s Oil, Gas and Petrochemical Products Exporters Union in Tehran, told press that the Taliban had sent a message to Iran that it could continue exporting petroleum products.

The Taliban sent messages to Iranian businessmen and the Iranian Chamber of Commerce, which has close ties to the government.

As a result, the Islamic Republic of Iran’s Customs Administration (IRICA), part of the government, lifted the ban on fuel exports to Afghanistan, which took effect on August 6 because of concerns about trade security in Iran.

Hussein also referred to the Taliban’s decision to reduce tariffs on fuel imports from Iran and other neighboring countries, and shared with press an official document issued by the Islamic Emirate of Afghanistan – which the Taliban call their own.

The document explains a 70% discount on imports of petrol, diesel and LPG from neighboring Afghanistan.

Iran has the world’s fourth-largest oil reserves, but the latest round of US sanctions imposed by former US President Donald Trump in 2018 has significantly reduced Iran’s oil exports.

Husseini said Iran still managed some trade, especially by sending fuel to neighbors such as Afghanistan, and that the withdrawal of US troops had made Iran and Afghanistan’s leaders less reluctant to deal with it.

Iran’s main exports to Afghanistan are petrol and petrol. From May 2020 to May 2021, Iran exported about 400,000 tons of fuel to its neighbor, according to a report published by the Iranian oil and gas research and consultancy platform PetroView.

The flow of Iranian fuel has been significant for Afghanistan over the past few years, according to a report by traders and the Afghan government.

Between March 2020 and March 2021, Iran imported $367 million worth of fuel, mostly fuel, according to data compiled by the Afghan Ministry of Finance, chambers of commerce and private businesses.

Husseini said Iran’s main fuel destinations are the eastern provinces near the Iranian border and southern areas such as Kandahar and Nimroz, where the Taliban had a strong presence even before the pressure of recent weeks.

Afghanistan has not developed its own oil industry. There are six mini-refineries in the country that only refine about several thousands of barrels of products every day.

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