Iran sets feedstock prices according to forex rate in free market
Baku, Azerbaijan, Oct. 25
By Khalid Kazimov – Trend:
Iran’s government has decided to stop using official foreign exchange rate in setting prices for the liquid feedstock of the petrochemical plants across the country.
Therefore the prices of all the liquid feedstock, including naphtha feedstock will be defined according to the free market exchange rate, Mehr news agency reported Oct. 25.
Some experts speculate that the decision will cause a 30-percent hike in the prices of oil products.
The decision comes following the government’s plans to unify the two-tier exchange rate for the US dollar aimed at attracting foreign investments after the removal of international sanctions on Tehran.
This is while Iran decreased feedstock gas price for petrochemical units to 2,642 rials (31,666 rials make $1) per cubic meter for the sixth calendar month of Shahrivar (Aug. 21-Sept. 21) as compared to 2,680 rials in the preceding month.
While Qatar sells gas feedstock to its petrochemical units at 6 cent per cubic meter and the price is even less in Saudi Arabia, Iran’s Oil Ministry received 8 cent for each cubic meter of the sold feedstock from the petrochemical units.
The Association of Petrochemical Industry Corporations (APIC) of Iran suggests that feedstock prices in Iran are not attractive for foreign investors.