Iranian Airlines to Pay Fuel by Card or Cash from Today

In late-August 2016, The National Iranian Oil Products Distribution Company (NIOPDC) initiated to use a rather controversial method for the airlines to settle their fuel bills. As of 22 August 2016, all the domestic airlines were obliged to pay for their fuel supplies at the six major airports directly to the bank accounts of the NIOPDC using ATM or POS machines at the airport. The complete implementation of the plan was announced to start in mid-September 2016.

Today, NIOPDC announced that the plan has been put into action in all of the country’s airports. The payments are now directly made by cash (ATM) or cards (POS), in efforts to reduce the debts.

The decision has been opposed by both Iran’s Civil Aviation Organization (IRI.CAO) and the airlines, that previously were able to pay their debts on credit every 10-15 days.

In June 2016, Aviation Iran reported that four major airlines were facing legal actions due to their high fuel debts. The debts are estimated to have reached IRR 9200 billion, according to the latest report from NIOPDC.

Currently, NIOPDC provides over 4 million liter fuel daily to foreign and domestic air carriers.


Photo: Mehr News Agency