$1 Billion Lost to ‘Bitumen Mafia’ in Iran Every year

With an annual production of several million tons, Iran is among the world’s top producers of bitumen, a fuel grade that is typically used in applications such as road surfacing, roofing and certain types of paint.

As Iran Open Data reported on July 10, most of the national production is distributed free of charge to state-owned entities and affiliates of the Islamic Revolutionary Guard Corps (IRGC) to be used for construction and infrastructure projects.

However, available data suggest that most of this free bitumen is smuggled or sold out of Iran to neighboring countries, enriching IRGC-linked middlemen, the collaborative initiative said.

It cited a report by Fars News Agency, which is affiliated with the IRGC, as showing that nearly 65 percent, or 2.5 million tons, of the bitumen provided gratis to contractors, government agencies and the paramilitary Basij force ends up being exported illicitly.

Taking into account an average bitumen price of $410 per ton, this is equivalent to $1 billion per year, Iran Open Data said, adding that this money could be used to build more than 11,000 schools in economically deprived areas of Iran or 7,000 small medical centers.

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Iran Open Data's original article in Persian is available here. 

Founded in 2016, Iran Open Data (IOD) strives to make Iran’s official data accessible, available and re-usable. Not only does IOD collect and process raw datasets for researchers and experts, it also publishes exclusive data-driven articles and digital stories for the general public. Additionally, IOD conducts public data calls and surveys on often neglected or taboo issues that are rarely addressed by the government. Follow IOD for all the data-stories concerning Iran.