Government Announces New Feedstock and Fuel Gas Rates for Petrochemical, Refining and Steel Plants

According to Bourse News, Iran's government has issued the natural gas feedstock rate for petrochemical plants along with the fuel gas rate for petrochemical, refining and steel direct-reduction complexes for the early months of the current Iranian year. Under the notice, the petrochemical feedstock gas rate was set at 17,956 tomans per cubic meter for Farvardin and Ordibehesht (the year's first two months), 20,127 tomans for Khordad, and 20,026 tomans for Tir.

The fuel gas rate for petrochemical plants, refineries and steel DRI complexes was set at 10,774 tomans per cubic meter for Farvardin through Khordad and 12,076 tomans for Tir. For methanol producers that settle their feedstock bill within 30 days, the feedstock rate will be calculated at 95 percent of the petrochemical gas feedstock rate. Feedstock pricing is one of the main drivers of profitability for listed petrochemical, refining and steel companies, and uncertainty over the rate had previously prompted letters and clarification filings from producers and Parliament's Energy Committee.