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Final Decision on Refinery Feedstock Prices

Final Decision on Refinery Feedstock PricesFinal Decision on Refinery Feedstock Prices

Three ministries have been tasked with setting the prices of gas and liquid feedstock for petrochemical complexes, following months of speculations and debates over the sensitive issue, ISNA reported Monday.

The oil ministry, the ministry of industry, mine and trade, and the ministry of economic affairs and finance should conduct the pricing procedures in the next two months following a decision made Monday by the Stock Market Stability Oversight Committee.

The move is in line with increasing transparency in financial and administrative interaction between the refineries and the National Iranian Oil Refining and Distribution Company.

The decision was made in a meeting attended by officials from the oil ministry, NIORDC and the Securities and Exchange Organization (SEO).

According to a cabinet approval, refining companies should, within a five-year period, assess and report the quality of five main oil products as well as aviation fuel, based on oil ministry standards.

A special fund will also be set up that would receive at least 30 percent of the annual profits of the refining companies to contribute to a project for improving the feedstock quality.

Except for the five main products as well as aviation fuel, the refining companies can independently carry out the domestic sales and export of their products, provided that they pay their debts, for feedstock supply, to the oil ministry.     

The decision also urges for the contribution of National Development Fund of Iran (NDFI) to the development and renovation projects of refineries.  

 

Financialtribune.com