In 2002, Iran earned $90 million from tar exports to the Persian Gulf states, Africa and Vietnam. Iran increased its tar prices to the international levels to prevent illegal smuggling of this product from its borders, which brought about a 54% increase in tar exports. This tar pricing policy was described as successful, with tar exports climbing to a record high of 701,000 tons in 2002 from 450,000 in 2001. Even though the $90 million earned from tar exports were based on FOB prices (receipt at dock), Iran was witness to its greatest income ever in the history of its tar production.

Gholamreza Rabani, Managing Director of the Company for the Commerce of Oil Products a subsidiary of the National Company for Refining and Distribution of Iran’s Oil Products, announced that the exports of tar to the Persian Gulf region, Africa and Vietnam witnessed respective 142%, 137% and 112% increases in 2002. Iran’s tar exports to Pakistan and Afghanistan experienced respective 30-fold and 10-fold increases. Bangladesh, Indonesia, Sri Lanka, Myanmar, Taiwan, Malaysia and Kuwait all imported tar from Iran in 2002, while Qatar, Greece and Armenia are said to be emerging markets for Iran in 2003. However, the transit of Iraq’s tar to Afghanistan through some of Iran’s organizations prevented further tar exports to that country.

The NIOC Isfahan refinery produced 64% of Iran’s exported tar, while Arak refinery produced 14%, Shiraz 12%, Tehran 9% and Abadan 1% of the countries tar exports. The quality of Iran’s exported tar met international standards set by an American research center. The Iranian membership of the World Trade Organization and some regional organizations such as the Asian Development Bank would serve to facilitate further Iran’s export operations.