Iran is to start bunkering operations on Qeshm island in February in a bid to rival the UAE's Fujairah as a supply hub.
Container line IRISL's managing director Mohammad Saeedi told the Tasnim news agency that the 52,000-tonne capacity terminal will give Iran access to traffic on one of the world's biggest shipping lanes in the Strait of Hormuz.
Iranian ships will not call at Fujairah after it is operational.
Officials said bunkering at Iranian ports is as much as $5 to $7 per tonne cheaper compared to Fujairah.
Iran is also building another bunkering plant with a capacity of 52,000 tonnes in Bandar Abbas.
"If we establish suitable fuelling infrastructure in the country, ships will get cheaper fuel at Iranian bunkering sites instead of doing a 130-mile detour to Fujairah," Saeedi said.
"Besides, this will create added value and wholesome jobs for the Iranian people," he added.
He said: "The government, the ministry of petroleum and the Ports and Maritime Organization of Iran should help develop this lucrative and productive industry.
"In this regard, we need more cooperation from the ministry of petroleum. Our oil products should not go the UAE and for fuel, Iranian vessels should be supplied by our own storage sites."
