The U.S. military in Afghanistan uses about 110 liters (30 gal) fuel per soldier per day. About half of that was coming through Pakistan until its border with Afghanistan was closed. For two month now the military lives off in-country reserves but it has now also started to purchase gasoline on the local Afghan market. But much of the fuel available on the Afghan market is actually coming from Iran. The military is thereby indirectly breaking U.S. sanctions against oil purchases from Iran.
Early 2011 Iran shut down all official fuel exports to Afghanistan. Fuel in Iran was at that time subsidized and often smuggled across the border. This close down was rumored to also be a response to sanctions the U.S. had put up against Iran. There was suspicion in Iran that exports to Afghanistan were used by the U.S. military.
During 2011 Iran abolished fuel subsidies and in December 2011 Iran signed a new agreement with Afghanistan to provide it with a million ton per year of gasoil, gasoline and jet fuel.
After the U.S. military killed 26 Pakistani troops in a border incident on November 26 the Afghan-Pakistani border is closed to all traffic. The fuel supply the U.S. military in Afghanistan received from and through Pakistan is cut off. Since the in-country reserves are limited and supply through the Northern Distribution Network is much more expensive as well as congested the military started to acquire petroleum products on the local market.
US officials say 85 per cent of the fuel for the military now come from the north.
Afghan businessmen say the international force is topping this up with purchases inside the country. This is affecting the market, forcing up prices and making petrol and public transport more expensive for the locals.
Farid Alokozay, head of the government agency responsible for petroleum products, said NATO was increasingly buying in fuel from domestic firms.
Mohammad Qorban Haqjo, chief executive of the Afghan Chamber of Commerce and Industry, confirmed that 20 local firms had signed a lucrative fuel supply deal with NATO.
“The contract was signed recently and is worth one billion dollars,” he said, adding that some of the firms belonged to relatives of senior Afghan officials.
The additional purchase from the Afghan market leaves the local people short of fuel:
“Since NATO forces started buying on the domestic market, not only have prices increased, but fuel is no longer available consistently,” Hajji Sayed Ahmad, who owns a petrol station in the city’s Deh Mazang district.
The shortage has prompted him to raise his prices, much to the annoyance of his customers.
“We have fights with dozens of people every day,” Ahmad said. “They think it’s our choice to increase fuel prices…. The general public don’t realise that fuel isn’t widely available and that the foreigners are buying it up.”
Kabul taxi drivers have increased their fares, leaving people queuing in the freezing cold for hours as they wait for cheaper but more erratic bus services. Once on the buses, they find that ticket prices have also increased.
As the military can only get 85% of it needs from the north supply from there is obviously limited. The border with Pakistan to the east and south is closed. The only source for additional fuel imports is thereby from Iran.
While it buys through Afghan middlemen the U.S. military will surely know where the fuel actually comes from. One wonders how long Iran will allow this to continue.