According to WikiPlast, citing IRNA, Majid Eshqi referred to the organization’s pursuit of revising the feedstock and refinery product pricing regulations. He mentioned that this regulation, initially issued on January 13, 2024, was applied retroactively, significantly impacting the profitability of major listed refineries.
Eshqi explained that following this development, meetings were held with the acting President and economic ministers in the government's economic council. At the end of these meetings, a directive was issued to review and reassess this regulation.
The head of the Securities and Exchange Organization emphasized that further reviews led the organization to communicate again with the Oil Minister and the Presidential Office. Simultaneously, the Minister of Economic Affairs and Finance also sent a letter to the government. Finally, this matter was discussed in today's morning economic council meeting, where it was decided to hold a special session for reviewing the formula involving the Ministry of Oil, the Ministry of Economy, the Securities and Exchange Organization, and the Refinery Association.
He noted that in this afternoon's session, three major revisions to the feedstock pricing regulations were discussed and agreed upon, with more detailed information to be announced by the Ministry of Oil. The three key revisions include:
1. The implementation date of the new regulation, which was initially set from the beginning of the year, has been changed to the date of its issuance. Thus, calculations for the period from the beginning of the year to February 11 of the previous year will be based on the 2022 regulation.
2. The opportunity loss of refineries, resulting from the production program issued by the National Iranian Oil Refining and Distribution Company—due to the country's special conditions and reduced gasoline imbalance—will be calculated and accounted for in the refineries' accounts.
3. It was also decided that the government’s debt to the refineries will be settled through the allocation of their feedstock.
Eshqi stated that these efforts would improve the conditions of refinery companies and reduce market volatility. Preventing the imposed losses on refineries will increase the attractiveness of investments in the refinery industry, and it is hoped that the industry’s development plans will be expedited, benefiting shareholders and the general public.
Majid Eshqi highlighted the challenges threatening the capital market over the past year and the measures taken by the Securities and Exchange Organization to improve the market situation. He noted that the stock market had faced tough times due to sectoral decisions, stringent monetary policies, rising interest rates, the widening gap between the NIMA exchange rate and the free market exchange rate, price controls, and the retroactive application of issued regulations. The Securities and Exchange Organization continuously worked through various meetings and negotiations to address these challenges and return the stock market to its primary path.
WikiPlast: As Eshqi stated, more detailed information on the revision of the feedstock pricing regulations will be announced by the Ministry of Oil. It remains to be seen whether these changes will include the dollar basis for refinery product pricing. If the changes apply to the dollar basis, similar adjustments might be expected for petrochemical product pricing. For a more precise evaluation, we must wait for the detailed publication of the revised feedstock pricing regulations.
Wikiplast