Iran oil minister retracts order on petchem feed pricing
Tehran, Iran, Nov. 1
By Mehdi Sepahvand – Trend:
Iranian Oil Minister Bijan Namdar Zanganeh has withdrawn his recent order on how to price feedstock to petrochemical plants.
“How prices are settled between non-governmental refineries and their customers is in no way related to the Oil Ministry,” Zanganeh said in a letter to National Iranian Oil Refining and Distribution Company Director Abbas Kazemi, Mehr news agency reported November 1.
On October 26, the Oil Ministry liberalized foreign exchange rate for oil product payments.
Accordingly, the feedstock that was to be sold to petrochemical factories – including naphtha, liquefied gas, pentane, and linear alkylbenzene – would have been priced according to the USD price in Iran’s free market (around 36,000 rials) instead of governmental price (around 31,700 rials), practiced thus far.