Following a resolution approved by the Securities and Exchange High Council and a statement issued by the ministry of industry, mine, and trade, petrochemical and chemical products will be supplied at Iran Mercantile Exchange (IME) with new prices set by the petrochemical downstream industries department.
According to a report issued by the securities and exchange news agency (SENA), the new prices have been calculated based on market exchange rates rather than the official ones. The new list for the current Iranian calendar month of Azar, which started November 22, indicates lower prices for petrochemical and chemical products.
Based on the new formula, the base price is reached when 95% of mean Persian Gulf FOB price is multiplied by the rial equivalence of market currency at the exchange market. This way, domestic consumers of petrochemical products are given a slight discount. Officials claim that such a formulation would keep the balance between supply and demand, eliminating the middlemen.
The new regulations specify that considering modifications made to the base price, both state-owned and private sector producers of petrochemical products are obliged to offer all their products at the IME.
The new regulations also state if the products offered at the IME are not sold through two consecutive offers, then the seller will be allowed to sell the unsold commodities outside the mercantile exchange.
